Kedutaan Besar Republik Indonesia
Embassy of the Republic of Indonesia
Ambassade de la RÉpublique d'Indonésie

House Holds Plenary Session, Discuss State Budget

TEMPO.CO,A�Jakarta - The House of Representatives held a plenary session onA�Wednesday, October 26, 2016A�to discuss the Revised 2017 State Budget Draft (RUU APBN).

Earlier on Tuesday, October 25, 2016, the draft was approved and signed by the Housea��s Budgetary Board and the Government.

Finance Minister Sri Mulyani was scheduled to attend the plenary session. The session was postponed for five hours as Sri Mulyani and House speakers had to attend a meeting at the State Palace with President Joko “Jokowi” Widodo.

In the State Budget Draft, the assumption for the economic growth is set at 5.1 percent, which is lower than the target proposed in the budget speech at 5.3 percent. The House and the government also agreed to set the assumption for the inflation rate at 4 percent. In addition, the assumption for the rupiah exchange against the US dollar is set at Rp 13,300.A� The average interest rate for 3-month government debt papers (SPN) is set at 5.3 percent.

In terms of oil lifting, the House and the government agreed to increase the target from 780,000 barrels per day to 815,000 barrels per day. The target for gas lifting in 2017 is set at 1.15 million barrels of oil equivalent per day. The assumption for the international oil price is set at US$45 per barrel.

The state revenue is expected to stand at Rp 1,750.3 trillion (US$134.6 billion), and the expense is agreed to be at Rp 2,080 trillion (US$160 billion). The target of the state budget deficit is set at 2.41 percent of theh gross domestic product or Rp 330.2 trillion (US$25.4 billion). The primary balance and financing is agreed to be at Rp 109 trillion (US$8.3 billion) and Rp 330.2 trillion (US$25.4 billion), respectively.

Sri Mulyani said that the 2017 State Budget Draft was designed to be more balanced and reflect the domestic economic condition.

“So we’ve made balanced policies in the State Budget in relation to the revenue, spending and deficit,” Sri Mulyani said after attending a work meeting with the House’s Budgetary Board on Tuesday, October 25, 2016.