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Government, House agree on economic indicators for 2018 state budget

Jakarta (ANTARA News) – The Indonesian government and the House of Representatives (DPR) have agreed on economic indicators and development targets in the draft 2018 state budget during a working meeting at the parliament building here on Tuesday.

“It is up to the government to respond to these macro-economic indicators to draft a (2018) state budget law,” Chief of the House Commission XI Melchias Marcus Mekeng said.

The economic indicators agreed in the meeting include the targets of economic growth at 5.2 to 5.6 percent, inflation rate at 2.5 to 4.5 percent, the rupiahs exchange rate at Rp13,300 to Rp13,500 per dollar, and interest rate on 3-month state treasury notes at 4.8 to 5.6 percent.

For the development targets, both the government and the parliament agreed to set unemployment rate at 5.0 to 5.3 percent, poverty rate at 9.5 to 10 percent, gini ratio at 0.38, and human development index at 71.5.

Finance Minister Sri Mulyani Indrawati stated that she had no problem with the economic indicators and development targets to build market optimism.

“We are aware that the DPR wants to see a balance between prudence and optimism,” she noted.

The three factions of the Great Indonesia Movement (Gerindra) Party, the Democrat Party, and the United Development Party (PPP) have earlier proposed the economic growth target at 5.1 to 5.5 percent.

The Gerindra faction has also proposed the assumed poverty rate at 9 to 9.5 percent.(*)