5.4 Percenbt Growth Quite Optimistic But Not A, Says Finance Minister Sri Mulyani
Indonesia’s Finance Minister Sri Mulyani Indrawati speaks to reporters.
Jakarta, MINA – Finance Minister Sri Mulyani Indrawati said the country’s economic growth target of 5.4 percent set in the 2018 draft state budget is quite optimistic, Antara News reported.
“In my opinion it is quite optimistic but not too ambitious,” Sri Mulyani said after giving a news conference on the financial note and the draft law on 2018 state budget here on Wednesday.
The government propose a deficit state budget for 2018 to the parliament on Wednesday with income target at Rp1,878.4 trillion (US$141 billion) and spending target at Rp2,204.4 trillion (US$165 billion).
The minister said the target could be reached with the improvement in household consumption, which is expected to grow 5 percent in 2018.
In addition, the economic growth is also expected to have support from investment sector which is predicted to grow more than 6 percent and exports predicted to grow 5 percent.
Sri Mulyani said the two sectors would be a strong drivers for economic growth in 2018 as the government would reduce the state budget burden to boost development.
It is indicated by budget deficit, which is set at 2.19 percent of the countrys GDP for 2018, lower than a deficit of 2.67 percent estimated for 2017.
Growth reflects greater optimism with greater support from factors outside state budget such as investment and exports, she said.
The government set the country’s economic growth target at 5.4 percent for 2018 with growth drivers including household consumption, investment, export and imports.
Household consumption and exports are predicted to grow 5.1 percent each. Growth is also predicted for government consumption 3.8 percent, gross fixed capital formation 6.3 percent and imports 4.5 percent.
Other macro economic indicators
Other macro economic indicators include inflation predicted at 3.5 percent, rupiah value at 13,500 per US dollar, interest rate on 3-month state treasury securities (SPN) at 5.3 percent, average price of Indonesian crude oil (ICP) at US$48 per barrel, oil lifting 800,000 barrels per day and gas lifting 1.2 million barrels oil equivalent per day.
Meanwhile, lawmaker from the Commission XI of the Parliament Mukhammad Misbakhun appreciated the optimism shown by President Joko Widodo, with the countrys economic growth target of 5.4 percent for 2018.
The economic growth target reflects optimism not overoptimism as the condition of economy did improve, Misbakhun said.
“In the draft state budget of 2018, there is a call for consolidation of all components and elements of the nation to focus more on the interest of the people,” he said.
He said with the relative strong growth target President Joko Widodo hopes to build up optimism of the nation that the state budget would have direct positive impact for prosperity .
He said the economy is growing and the people should benefit from the growth.
He called for support from all especially regional administrations and tax payers for the central government to reach the targets in the state budget.
“When the President talks about economy for the people, all political interest should be set aside as the objective is the welfare of the people,” he said.
He said the draft state budget constitutes a concrete form of cooperation between the government, the Parliament and Regional Representative Council (DPD).
Amid the global economic uncertainty, the state budget should realistic, credible and sustainable. The draft state budget for 2018 is valued at Rp2,204.4 trillion (US$165 billion) (T/RS5/RS1)
Mi’raj Islamic News Agency (MINA)
