"Economic growth in 2016 is targeted to reach 5.5 percent," President Joko Widodo said.
Jakarta (ANTARA News) - President Joko Widodo said that the government, based on its macroeconomic assumptions, has set the countrys economic growth in the Draft 2016 State Budget at 5.5 percent.

"Economic growth in 2016 is targeted to reach 5.5 percent," President Joko Widodo said in his address when presenting the government statement on the Bill on the State Budget for the 2016 Fiscal Year and Its Financial Note before the Plenary Session of the House of Representatives (DPR) here on Friday.

He said that the global economic condition was projected to recover so that the performance of exports and imports and the global demand for Indonesian products were also increasing.

"The infrastructure development is also expected to bolster the performance of the Gross Fixed Capital Formation and the national consumption," Jokowi, the president is fondly called, said.

Jokowi said that the national connectivity improvement and expenditures reallocation to productive sectors were expected to be able to stimulate the national economy, maintain the purchasing power of the people and control inflation rate.

The government also projected the inflation rate in 2016 at 4.7 percent. "This infaltion is subject to the influence of a number of factors, among others, the price fluctuation of world food commodities and energy, the shifting of exchange rate and climate change," he added.

In the draft 2016 state budget, the government also set the inflation rate at 4.7 percent, rupiah exchange rate at Rp13,400 per US dollar, average rate of treasury bills at 5.5 percent.

The Indonesian crude oil price was set at US$60 per barrel while the oil and natural gas lifting was projected at 1.985 million barrels of oil equivalent per day.

President Jokowi unveiled the countrys 2016 budget plan on Friday at Rp2,121.3 trillion with revenues set at Rp1,848.1 trillion and deficit at Rp273.2 trillion.

"The deficit in the draft 2016 budget is Rp273.2 trillion," President Jokowi said.

He said based on direction of policies and targets to be achieved the draft budget for 2016 had been set at Rp2,121.3 trillion consisting of central government spending set at Rp1,339.1 trillion, spending of ministries and state institutions at Rp558.7 trillion and transfers to regions and villages at Rp782,2 trillion.(*)

Editor: Heru Purwanto
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