Economic Growth Set in 2018 RAPBN Deemed as Unrealistic Target
20 May 2017 10:56 WIB
TEMPO.CO, Jakarta - An economist from the Institute for Development of Economics and Finance (INDEF), Dzulfian Syafrian, stated that national economic growth target in 2018 Draft State Budget (RAPBN) ranging from 5.4 to 6.1 percent is unrealistic.
The target was announced by the government through Finance Minister in the plenary meeting of The House of Representative this morning, May 20.
Dzulfian claimed that the target is too ambitious.
President Joko Widodo and Vice President Jusuf Kalla (Jokowi-JK) keep setting a high target, yet fail to achieve it.
He instantiated a statement from Jokowi-JK during 2014 campaign claiming that they would generate higher than 7 percent of growth, but until now it reaches less than 5 percent.
Another case is when Jokowi-JK targeted high revenue from taxes in 2015-2016. However, Dzulfian added, at that time oil prices went down and the revenue from taxes went stagnant. As a result, tax amnesty policy was launched and left a bad taste of social injustice to the people.
Dzulfian predicted 2017 national economic growth to reach 5.1-5.3 percent. He also predicted the growth of the following year to fall in the range of 5.2-5.4 percent.
"I believe this target is more realistic yet still optimistic and does not seem pessimistic,” he said.
AHMAD FAIZ
