Gov’t Targets 5.3% Economic Growth in 2020
Date 16 Agustus 2019
The Government sets a target of economic growth within the range of 5.3 percent in 2020, with consumption and investment as the main engines. Meanwhile, inflation will be maintained low within the range of 3.1 percent, to support people’s purchasing power and the Rupiah exchange rate is estimated to be in the range of Rp14,400 per US dollar.
“The Government is certain that investment will continue to flow into the country owing to positive perception of Indonesia and improvement in investment climate. Thus, the 3-month Government Treasury Bill (Surat Perbendaharaan Negara/SPN) rate is estimated to be within the range of 5.4 percent,” President Joko “Jokowi” Widodo stated on the Presentation of the Government Statement on the Bill on the State Budget for the 2020 Fiscal Year and Its Financial Note Before the Plenary Session of the House of Representatives of the Republic of Indonesia in Senayan, Jakarta, Friday (16/8).
Furthermore, Indonesia’s Crude Oil Price (ICP) is estimated to average US$65 per barrel with the lifting target of oil and gas in 2020 is estimated to reach 734 thousand barrels per day and 1.19 million barrels of oil equivalent per day, respectively.
The President also went on to say that the policy of the 2020 Bill on the State Budget is designed in an expansive way but remains directed and measured. This constitutes the manifestation of the Government’s commitment to draw up a more focused Bill of State Budget to support the priority activities by sustaining the risk within safety limits.
In accordance with the theme of the 2020, according to President Jokowi, the Bill is focused on five main aspects, among others: First, strengthening the quality of human resources to create healthy, intelligent, skilled, and prosperous human resources. Second, accelerating infrastructure development in support of economic transformation. Third, strengthening social protection programs in response to the demographic challenges and in anticipation of aging population. Fourth, improving the quality of fiscal decentralization to boost regional autonomy. Fifth, anticipating global uncertainty.
“By focusing on those five main aspects, and referring to the character of expansive, directed and measured fiscal policy, the budget deficit is drawn up to reach the amount of 1.76 percent of Gross Domestic Product (GDP) or Rp307.2 trillion, with State Revenues and Grants of Rp2,221.5 trillion, and State Expenditure of Rp2,528.8 trillion or about 14.5 percent of GDP,” President Jokowi said.
The President explained that the budget deficit in 2020 will be funded by utilizing safe sources of financing and will be prudently and sustainably managed.
“Debts will be managed through a combination of efficient instruments, including by considering risk factors and productive utilization,” he said, while adding that debts are used among other things for activities that support national development programs, be it in the fields of education, health, social protection, infrastructure or defense and security. (Tim Liputan MPR-DPD-DPR/ES)
Translated by : Fairuzzamani Inayatillah
Edited by : Mia M. Bonaedy