Indonesia: BI Positively Welcomes Economic Assumptions for 2018

• Aug 17, 2017

TEMPO.CO, Jakarta – Bank Indonesia (BI) Governor Agus Martowardojo positively welcomed the inflation assumption set at 3.5 percent in the 2018 State Budget Draft (RAPBN). Agus said that the assumption reflects the government and BI’s commitment to realizing low and stable inflation rate.

“I also think that the other assumptions are good and will lead to a healthy posture,” he said at the Senayan Parliamentary Complex in Jakarta yesterday, August 16.

The BI governor explained that the commitment to realizing a fiscal deficit of 2.19 percent in the 2018 State Budget Draft is a promise to have a lower budget deficit. In 2017, the budget deficit stands at 2.67 percent to the Gross Domestic Product (GDP).

The government in the 2018 State Budget has set a target to achieve a 5.4-percent economic growth, a total state revenue of Rp1,878.4 trillion, and a total spending of Rp2,204.4 trillion. According to Agus, the projection reflects the government’s commitment to optimizing a strong and inclusive economy.

He revealed that the government’s debt ratio will be maintained at below 30 percent of the GNP.

“We positively welcome [the assumpsions]. We also accept the rupiah exchange assumption at Rp13,500 per US dollar,” said the BI governor.

Source: https://en.tempo.co/read/news/2017/08/17/056900744/BI-Positively-Welcomes-Economic-Assumptions-for-2018