Indonesia maintains 5.3 percent growth target in revised state budget

Jakarta (VNA) – The Indonesian Government maintained a 5.3 percent economic growth target for this year in the revised state budget to withstand uncertainties in the domestic and global economies, the Jakarta Global quoted Indonesian Finance Minister Bambang Brodjonegoro as saying.

Bambang noted the International Monetary Fund had adjusted its world economic growth forecast for 2016 from 3.4 percent to 3.2 percent. This implies a gloomy export year for Indonesia.

However, household consumption, another growth engine which drives more than half of Indonesia’s economy, tends to rise following the 13 th salary disbursement before Idul Fitri celebration in the second quarter of the year.

According to the revised state budget, inflation rate will be curbed at 4 percent, lower than the 4.7 percent estimated in the old plan. The Government forecasts that the rupiah will strengthen against the US dollar to 13,500 rupiahs from the previous 13,900 rupiahs.

Meanwhile, budget deficit is expected at 2.48 percent of the country’s gross domestic product, higher than the previous projection of 2.15 percent. Bambang said that Indonesia will issue 57.8 trillion rupiahs (4.23 billion USD) in government bonds to compensate the deficit.-VNA