House Happy with 2016 State Budget Draft

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  • TEMPO.CO, Jakarta – The macro assumptions proposed by the government in the 2016 State Budget Draft was responded positively by most House of Representatives' council member. The House's top fractions PDI-P and Golkar stated their optimism that next year's economic projections will be achieved.

    PDI-P's Daniel Lumban Tobing said with that a growth assumption of 5.8 to 6.2 percent is quite realistic given how this year's economic policies are focused on infrastructure development.

    PDI-P also considers 2016's inflation target of 3.0 to 5.0 percent as achievable.

    Golkar echoed a similar sentiment, with its member Dewi Asmara stating her confidence that economic growth will be supported by internal and external sentiments. She reminded the government to continue supporting Joko Widodo and Jusuf Kalla's programs.

    "The trade balance deficit must also be lowered further," she added.

    However Gerindra member Willgo Zainar thinks otherwise, saying that 2016 targets are too ambitious. According to Willgo, with this year's first quarter showing a growth of just 4.7 percent—far below the six percent target—should be addressed by pegging 2016's growth target at a moderate 5.5 percent.

    Meanwhile, Finance Minister Bambang Brodjonegoro said the budget draft was formulated based on the policy outline set out in this year's amended state budget. To meet the growth targets, he said, the government will continue to boost the development of productive infrastructure and subsidize diesel fuel, electricity and fertilizers.

    ANDI RUSLI