Indonesian government seeks funding at least Rp389.3 trillion (US$27.42 billion) to finance the 2020 State Budget’ deficit - Photo by Bappenas Office

JAKARTA (TheInsiderStories) – Indonesian government seeks funding at least Rp389.3 trillion (US$27.42 billion) to finance the 2020 State Budget’ deficit, said finance minister today (08/15). Next year, the deficit is estimating around 1.76 percent of Gross Domestic Products (GDP) or worth of Rp307.2 trillion.

“We try to reduce the deficit but not too fast to tighten fiscal policy cause we need to counter the global turmoil,” finance minister Sri Mulyani Indrawati told reporters today responded on low deficit target.

This year, the government estimated the deficit at 1.84 percent of GDP. But some economist sees the deficit will widen to 1.93 percent of GDP.

Lucky Affirman, the directorate general at the ministry said, his department has published 75 percent of this year government bond’ issuances from its target Rp827.5 trillion (gross). For 2020, he told TheInsiderStories, the government open to published the bond before the current year. But he declined to figure out the number.

“Is too early to mention the number cause we will discuss the draft first with parliament,” he explained.

In his speech at the parliament member, President Joko Widodo explained Indonesian economy its expecting grow 5.3 percent from this year‘ target 5.2 percent. Inflation 3.1 percent, Rupiah over the Greenback at 14,400, rate of T-bills for three months at 5.4 percent, oil price $65 a barrel, oil lifting 734,000 barrels and gas lifting 1.19 million barrels equivalent.

In total, the government proposed Rp2,528.8 trillion budget to parliament for 2020. The funds will use to finance the president’ programs in his second term.

Coordinating Minister for Economic Affairs, Darmin Nasution revealed, the 2020 State Budget’ focus are to accelerate the infrastructure projects, rise the human resources capacity, structural reform, simplify the investment permit and export. He expect the 2020 State Budget into effect in September.

While, finance minister Sri Mulyani Indrawati explained, there are new policy and initiatives at the 2020 State Budget such as tax incentives for Human Resource, Social Protection Smart Card for College, Pre-Work Card, Basic Food Card. Then, mini tax holiday for investment values under Rp500 miliar (US$35.21 million) and other program.

“In addition, we will also provide funds for the completion super priority tourism project like Lake Toba in North Sumatera, Borobudur in Central Java, Mandalike in West Nusa Tenggra, Labuan Bajo in East Nusa Tenggara, and Likupang in North Sulawesi. President expect that all infrastructure and content are expected to be completed by 2020,” said the minister

Furthermore, Bambang Brodjonegoro, minister of national planning development revealed, the government expect the poverty rate below 9 percent in 2020 from this year around 9 percent. While, the level of inequality below 0.38 per cent, open unemployment close to 5%, and a Indonesia Development Index 72.5.

US$1: Rp14,200

by Linda Silaen, Email: linda.silaen@theinsiderstories