Indonesia's Finance Minister Sry Mulyani Indrawati - Photo: The Finance Ministry.

JAKARTA (TheInsiderStories) – Indonesian House of Representatives’ Budget Committee has agreed a posture of 2020′ state budget bill that has been discussed with the government. State revenues are set around Rp2,223 trillion (US$156.54 billion), up Rp11.6 trillion from the initial amount of Rp2,221 trillion.

“The budget posture has been determined to consist of state revenue, state expenditure, primary balance, deficit, and budget financing,” Finance Minister Sri Mulyani Indrawati told reporters in Jakarta, today (09/6).

From the figures, tax revenues increased by Rp3.9 trillion from Rp1,861.8 trillion to Rp1,865.7 trillion. This is consists of an increase in oil and gas income tax revenue of Rp2.4 trillion, land and building tax of Rp700 trillion, and tobacco excise of Rp1.2 trillion.

Then the non-tax state revenue increased by Rp7.7 trillion from Rp359.3 trillion to Rp367 trillion. This consists of oil and gas natural resource revenues which are projected to increase by Rp6.7 trillion to Rp127.3 trillion and separated state wealth increase by Rp1 trillion to Rp49 trillion.

State expenditure also increased by Rp11.6 trillion from Rp2,528.8 trillion to Rp2,540.4 trillion. Spending consists of central government spending which is projected to increase by Rp13.5 trillion from Rp1,670 trillion to Rp1,683.5 trillion.

The central government expenditure consisted of ministry expenditures amounting to Rp884.6 trillion, and non-ministerial expenditures which experienced an increase of Rp13.5 trillion from Rp785.4 trillion to Rp798.9 trillion.

Then, state expenditure also consists of regional transfers which rose by Rp1.8 trillion from Rp786.8 trillion to Rp784.9 trillion, and village funds Rp72 trillion.

“Because energy subsidies fell by Rp12.6 trillion, state spending also dropped by Rp11.2 trillion. But we have added in non-ministerial spending for urgent needs of Rp21.7 trillion and there is an increase in profit sharing funds of Rp1.4 trillion. So if calculated, state spending will continue to increase by Rp11.6 trillion,” the minister said.

Then, the primary balance was maintained at Rp12 trillion and a budget deficit of 1.76 percent of the gross domestic product. While the budget financing of Rp307.2 trillion in 2020 remained unchanged.

Meanwhile, the macro assumptions are set as follows; economic growth of 5.3 percent, inflation of 3.1 percent, rupiah exchange rate of Rp14,400 per US Dollar, the three-month Treasury Letter rate is 5.4 percent, Indonesia Crude Price $63 a barrel, oil lifting 755 thousand barrels per day.

The government’s development target is to reduce unemployment to 4.8 percent from 5.0 percent, poverty to 8.5 percent from 9.0 percent, the Gini ratio of 0.375 from 0.380, and the human development index to 72.51.

US$1=Rp14,200

Written by Lexy Nantu, Email: lexy@theinsiderstories.com