JAKARTA (TheInsiderStories) — After few interruptions, House of Representatives has now agreed on Indonesia’s 2019 State Budget. The State Budget was drafted based on the assumption of economic growth at 5.3 percent, inflation 3.5 percent, Rupiah 15,000 against US dollar, and the three-month’s T-bills rate of 5.3 percent.
At the plenary meeting on Wednesday (31/10), the opposition criticized that the State Budget posture is very prone to global economic condition. Gerindra Party’s member Willgo Zainar highlighted, the additional financing needs to patch the budget deficit which is quite big, almost Rp296 trillion (US$19.73 billion).
Moreover, he highlighted unachieved tax revenue and low tax ratio. He added, the budget allocates much for paying debt interest not to drive the domestic economy.
Responded on the critics, Finance Minister Sri Mulyani Indrawati assured that next year’s budget will implements prudence principle amid the global uncertainty.
Here’s 2019 macro assumption and 2019 State Budget :
- Economic growth: 5.3 percent
- Inflation: 3.5 percent
- Rupiah exchange rate againts US Dollar: Rp 15,000
- T-bills interest rate for 3 months: 5.3 percent
- Indonesia crude oil price: US$ 70/barrel
- Average oil lifting: 775,000 barrel/day
- Average gas listing: 1.25 million equivalent to oil/day
- Jobless rate: 4.8-5.2 percent
- Poverty rate: 8.5-9 percent
- Gini ration: 0.38-0.385 percent
- Human development index : 71.98
- State revenue: Rp 2,165.1 trillion
- State expenditure: Rp 1,461.1 trillion
- Primary balance: negative Rp 20.1 trillion
- Deficit: Rp 296 trillion or 1.84 percent to GDP
- Budget financing: Rp 296 trillion
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