Govt Agrees on 2019 Macro Assumptions; Sets Moderate Targets

TEMPO.CO, Jakarta - The government and the House of Representatives (DPR) Financial Commission agreed on the macro assumptions and development target for the 2019 State Budget Draft. The targets were set during a work meeting on Tuesday, June 5.

Finance Minister Sri Mulyani Indrawati said here on Tuesday that the outcome will be used to draft the Financial Notes.

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The work meeting agreed on an economic growth target of 5.2-5.6 percent, inflation rate of 2.5-4.5 percent (yoy), an exchange rate between Rp13,700 and Rp14,000 per US dollar, and the 3-month SPN interest rate at 4.6-5.2 percent.

In terms of development, the agreed open unemployment target is 4.8-5.2 percent while the poverty rate is estimated at 8.5-9.5 percent, the Gini ratio at 0.38-0.39, and the Human Development Index (HDI) at 71.98.

Compared to the 2018 state budget, the macro assumptions are more moderate. The 2018 state budget pegs the economic growth at 5.4 percent, inflation 3.5 percent, exchange rate Rp13,400 per US dollar and the 3-month SPN interest rate at 5.2 percent.

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The macro assumptions and development targets will be used by the government to draft the Financial Notes for the 2019 State Budget.

"Of course all inputs and suggestions from leaders and members will be taken into account in preparing the Financial Note," Sri Mulyani said.

ANTARA