Gov’t to Lower Rupiah Exchange Rate, Oil Price, Inflation in 2016 Draft of Revised State Budget

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 7 April 2016
Category: News
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Seskab-dan-Menkeu

Cabinet Secretary Pramono Anung and Minister of Finance deliver a press statement on the results of a Plenary Cabinet Meeting, at the Main Building of the Ministry of State Secretariat, on Thursday (7/4) afternoon

The Government ensured that it would propose the 2016 Draft of Revised State Budget (RAPBN-P) to the House of Representatives (DPR) on 17 May.

In the RAPBN-P, the Government is still setting the target of economic growth at 5.3 percent; yet, rupiah exchange rate is predicted to fall from Rp13,900 to Rp13,400 per US$.

“The main points in the RAPBN-P to be delivered in detail by Minister of Finance Bambang Brodjonegoro are to maintain economic growth to stay at 5.3 percent, to keep rupiah exchange rate at Rp13,400 per US$, and to save approximately Rp50.6 trillion of State Budget,” Cabinet Secretary Pramono Anung said in a press statement at the Main Building of the Ministry of State Secretariat, on Thursday (7/4) afternoon.

In the meantime, Bambang, who accompanied Pramono on the occasion, added that the Government, beside setting the target of economic growth and rupiah exchange rate, also lowers the estimated inflation rate from 4.7 percent to 4 percent as well as lowers the estimated oil price from  US$ 50 to  US$ 30 per barrel.

According to Bambang, revenue on oil and gas, particularly on its income tax (PPh) declined by Rp17 trillion, while, non-tax revenues (PNBP) from the same sectors are predicted to slide by about Rp50.6 trillion, and PNBP from non-oil and gas sector, particularly from mining are predicted to slide by about Rp5 trillion.

To compensate for the lower revenue, Bambang added, the Government will maintain non-oil and gas income and said that the implementation of tax amnesty law will play a great part.  (DNS/JAY/ES) (RAS/EP/YM/Naster)

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