Indonesian govt targets economic growth at 5.4% in 2018

The government has set an economic growth target at 5.4 percent in the 2018 Draft State Budget (RAPBN) to be achieved through the support of public consumption, increased investment, and improved export/import performance.

President Joko Widodo (Jokowi) made the remarks while delivering the Governments RABPN 2018 and its Financial Note, in front of the House of Representatives (DPRs) Plenary Session in the Parliament buiulding in Jakarta on Wednesday.

On the occasion, the president also explained the governments macroeconomic indicators in the RAPBN 2018. It has set the inflation target at 3.5 percent, exchange rate of rupiah currency at Rp13.5 thousand per US dollar, interest rate of three-month treasury bills (SPN) at 5.3 percent, average price of Indonesian crude (ICP) at US$48 per barrel, oil lifting at 800 thousand barrels per day, and gas lifting at 1.2 million barrels of oil equivalent per day.

According to the president, by 2018, the development will be directed to boost the economic growth in Maluku, Papua, Kalimantan, Sulawesi, Bali, and Nusa Tenggara regions by increasing links to Java and Sumatra, which have been the biggest contributors to the national economy.

The improvement and development of infrastructure, both connectivity and energy availability, are key to the efforts to develop economic equality.

In addition, the development of border areas is also a priority of the government, hoping that they will become the gateway of international trade transactions, in order to improve the economy in the border areas and the national economy as a whole.

The government on Wednesday announced the 2018 Draft State Budget, with revenues of Rp1,878.4 trillion, state expenditures of Rp2,204.4 trillion, and a budget deficit of approximately Rp325.9 trillion, equivalent to 2.19 percent of Gross Domestic Product (GDP).

According to the president, from the total revenue of Rp1,878.4 trillion, tax revenues are planned at Rp1,609.4 trillion and non-tax state revenues at Rp267.9 trillion.

Meanwhile, the state expenditure is set Rp2,204.4 trillion, consisting of Central Government Expenditures amounting to Rp1,443.3 trillion, and Funds Transfer to Regions and Villages amounting to Rp761.1 trillion.

Source: ANTARA