JAKARTA (TheInsiderStories) - Indonesia government has widened the deficit in the Revised State Budget for 2016 (APBN-P) to 2.5 percent of GDP from initial target 2.15 percent amid the weakness of commodity prices and global economy, said Finance Minister Bambang Brodjonegoro.
The Finance Minister said the government will deliver the revised 2016 State Budget to the House of Representatives (DPR) on May 17 and expected to be approved within 30 days thereafter.
The government keeps the economic growth target of 5.3 percent, lowers the inflation target to 4 percent from 4.7 percent set previously, lowers the Indonesia Crude Price (ICP) to US$35 per barrel from $50 per barrel and sets the exchange rate at Rp 13,400 against US dollar from initial target Rp 13,900 against the US dollar.
The government also keeps the oil lifting of 830,000 barrels per day (bpd) and gas lifting of 1.15 million barrels of oil equivalent per day (boepd).
Based on the macro economic assumptions, the government revenues is expected to reach Rp 1,732.5 trillion from previously Rp 1,822.5 trillion, due to a decline in non-tax revenues from natural resources, oil and gas from Rp 78.6 trillion to Rp 28.6 trillion also oil and gas income tax to Rp24.4 trillion from initial target Rp 41.1 trillion. The lower revenues from oil and gas well as mining are in line with the low commodity prices.
On the government spending, the government cuts the ministries and agencies spending from Rp 784.1 trillion to Rp 733.5 trillion
“Deficit could possibly be widened to 2.5 percent or Rp 315 trillion from previously Rp273 trillion or 2.15 percent of gross domestic product (Rp12,600 trillion). We will fund the deficit from domestic sources and others (external). We shall see,” Bambang said.
Indonesia has the surplus cash Rp 20 trillion from last year state budget. (*)