TEMPO.CO, Jakarta - President Joko Widodo or Jokowi called for an optimistic 2018 State Budget Draft and an increased economic growth target from 5.4 percent to 6.1 percent in 2018.
“I want the 2018 State Budget Draft to be prepared with the spirit of optimism, but it must remain realistic and credible,” President Jokowi said when opening a plenary cabinet session at the Presidential Office in Jakarta on Wednesday, March 15, 2017.
President Jokowi explained that the economic growth target was set in line with the global economic recovery. In a bid to achieve the target, President Jokowi asked all ministries to work hard and formulate concrete strategies.
In addition, the cabinet meeting also set a target to achieve an 11-percent increase in tax ratio against the Gross Domestic Product. President Jokowi also called on ministers to set priorities for the program in the 2018 State Budget Draft, in a bid to boost productivity, economic growth and investment.
Jokowi emphasized that the government must also encourage private sectors to invest more due to government’s limited fiscal capacity.
“As I mentioned, 70-80 percent of investment must come from private sectors and state-owned companies.
Therefore, Jokowi urged state-owned companies to increase capital expenditures in a bid to boost the national economic growth.
AMIRULLAH SUHADA
