|
|
JAKARTA - Indonesia will revise downward its growth target for the 2012 budget from 6.7 percent to 6.5 percent, Finance Minister Agus Martowardojo has said.
"We will adjust our economic growth down to 6.5 percent," the minister said in Jakarta on Monday. He noted that the government would ask for the revision of the growth target through the 2012 budget in a plenary meeting of the House of Representatives on Tuesday.
The government is certain to change macro assumptions in the revised budget, such as for the Indonesian Crude Price from US$90 to US$105 per barrel and oil lifting from 950,000 barrels per day to 910,000 to 940,000 barrels per day, the minister said.
The rate of inflation initially set at 5.3 percent will be adjusted to 6.0 to 7.0 percent, while the rupiah exchange rate against the US dollar will change from Rp8,800 to Rp8,800 to Rp9,000.
Meanwhile, it has been predicted that the rate of the three-month Bank Indonesia Certificate (SBI) will not change from the present assumption at 6.0 percent, Martowardojo said.
The acting head of the Indonesian Finance Ministry`s fiscal policy department, Bambang Brodjonegoro, however, said that the growth target for this year would not change much from the present assumption. "We are still within a 6.5 and 6.7 percent range. If a slowdown does occur, it will not be as deep as in 2009," he said.
He believed the ICP assumption would be above US$100 while the rate of inflation was assumed to be at 6.0 to 7.0 percent, and the three-month SBI would remain at 6.0 percent. "Even now the rate of state bonds (SPN) has been very low, while its supply is limited. So, it will not be affected," Brodjonegoro said referring to the SBI rate.
About the drop in the rupiah exchange rate to Rp8,900 against the US dollar, Brodjonegoro noted that the assumption would support the business climate and trade transactions .
"From the economic point of view, we have seen how the rupiah exchange rate of Rp9,000 per US dollar has helped in the balance of payment. We have seen that the trade balance had declined a bit, but it remained positive, although exports slowed down. We hope the present rate would be more friendly for businesses," he said.
On the possibility for the budget to expand to 2.2 percent from 1.5 percent, he said it could be a result of the rise in Indonesian Crude Price to US$120 per barrel and the uncertainty with regard to the government`s decision to raise the price of gasoline. "So, if the fuel oil policy could reduce the deviation, perhaps the deficit would not expand too far away from the existing one," he said.
Addressing the issue of the proposed electricity price hike of 10 percent in April, he said the government remained consistent with the 2012 budget law. "We will not move away from the government's proposal put in the 2012 budget, namely 10 percent. It is only about when it would be implemented and to what extent, which is still to be determined by the House of Representatives," he said.
|
|
|
|
|
|
There are no reactions on this blog entry yet. Be the first one to give a reaction here!
|
|
Log in to write a reaction
|
You are not logged in to the website. You have to be logged in to write a reaction on this blog entry.
· If you already have an account, please login.
· If you have lost your password, please retrieve it.
· If you don't have an account yet, you can create one.
|
|
|
| ABOUT THIS ENTRY |
Add this blog entry to your email, your own blog, MySpace, Facebook, or whatsoever via AddThis:
|
Login if you want to receive emails for reactions on this blog entry. You will receive an update as soon as a reaction on this blog entry is posted.
|
|
Looking for e-tickets for flights in Indonesia? Here's your solution! Order your e-tickets at ticketindonesia.info.
|
| BLOG ARCHIVE |
· 2015, 28 entries
· 2014, 591 entries
· 2013, 750 entries
· 2012, 1061 entries
· 2011, 792 entries
· 2010, 644 entries
· 2009, 916 entries
· 2008, 504 entries
· 2007, 725 entries
· 2006, 1014 entries
· 2005, 723 entries
· 2004, 558 entries
· 2003, 525 entries
· 2002, 375 entries
· 2001, 162 entries
|
| POPULAR TAGS |
Automatically generated every hour
|
| EXCHANGE RATES |
@ 17 May 2018 18:12 CET
|
@ 17 May 2018 21:58 CET
|
@ 15 May 2018 08:42 CET
|
@ 07 May 2018 07:48 CET
|
@ 16 May 2018 09:18 CET
|
@ 17 May 2018 00:46 CET
|
|
| Go to 'exchange rates' |
|
