Government, DPR Agree on Macro Assumptions in APBN-P

TEMPO.CO, Jakarta - The House of Representative's (DPR) Commission IX overseeing finance had finally approved macro assumption changes in the revised state budget (APBN-P) for 2014. The meeting, held yesterday, had resulted in approvals of assumption changes related to economic growth, inflation rate, interest rate and rupiah exchange.

"With the assumption, the government believes that the current account deficit can be maintained under three percent," Finance Minister, M. Chatib Basri said in the meeting.

The government agreed on the change of economic growth assumption to 5.0-6.0 percent. On May 20, 2014, the government proposed to reduce the economic growth assumption from 6 percent to 5.5 percent. Chatib was optimistic that the projected economic growth could be attained by boosting exports in the second quarter of this year.

The inflation rate assumption was changed from 5.5 percent to 5.3-7.3 percent. The assumption for the interest rate was increased from 5.5 percent to 5.5-6 percent, and the assumption for rupiah exchange was adjusted from 10,500-11,700 to 11,000-11,700.

Member of the DPR's Commission IX, Harry Azhar, said the macro assumptions revision was aimed at reducing the burden for the next government.

"There would be fuel price increase if the DPR's Budgetary Body decided to assume the inflation rate at 7.3 percent," Harry said.

PERSIANA GALIH