ID :
339236
Wed, 08/27/2014 - 14:41
Auther :

Jokowi To Propose Revision Of Budget Macroeconomic Assumptions

Jakarta, Aug 27 (Antara) - President-elect Joko Widodo, popularly called Jokowi, will propose revision of various macroeconomic assumptions in the Draft 2015 State Budget, such as economic growth from 5.6 percent to 5.8 percent, Jokowi`s economic team member noted. "We have met with Jokowi and agreed on many points regarding the budget in 2015. Deliberations on it at the House of Representatives (DPR) have begun today. Jokowi asked for revision of economic growth assumption (from 5.6 percent to 5.8 percent)," Arif Budimanta said here on Wednesday. Arif made the remarks during a discussion on the Draft 2015 State Budget at the Institute for Development and Economics Finance. Besides economic growth, Jokowi also asked for revision of the rupiah exchange rate assumption from Rp11,900 to Rp11,600 per US dollar. Arif, who is also a member of Commission IX on financial affairs of the DPR, said the proposed economic growth of 5.8 percent will support the main program of Jokowi on investment growth and reduction of bureaucratic licensing procedures. Investment will be boosted by down and upstream industries in an effort to reduce dependence on raw material imports. The sectors that will be boosted include natural resource-based strategic industries such as food and mining, he added. "The inflow investment that will be uplifted is not only portfolio investment but also direct investment in the real sector," Arif remarked. The program to reduce bureaucratic licensing procedures will directly be launched in the first three months of the Jokowi government, he stated. The program will begin in January 2015 because the new government will assume office on October 20, 2014. "In other countries, economic growth is driven by investment, budget absorption, and surplus of trade balance," Arif pointed out. The government`s budget absorption will be dominated by allocations to productive sectors. Apart from capital expenditures, Jokowi has promised to optimize budget absorption in the context of productive activities, including on civil servants and bureaucracy operations. The current government has set macroeconomic assumptions in the Draft 2015 State Budget, such as inflation of 4.4 percent, SPN state treasury bill rate of 6.2 percent, rupiah value of 11,900 per dollar, price of oil ICP $105 per barrel, oil lifting about 845,000 barrels per day, and gas lifting 1,248,000 barrels per day. In the meantime, President Yudhoyono is expected to meet Jokowi in Bali on Wednesday evening, after his visit to Timor Leste. President Susilo Bambang Yudhoyono stated that he will listen more from Jokowi during their meeting. "During the meeting, I will listen more from Jokowi about what he will say and ask, and about the details of his government and policies," Yudhoyono told newspersons here before departing for Bali. The president noted that he will convey his ideas and thoughts to Jokowi in the next meeting if he is asked to do so. "In our next meeting, I will tell Jokowi things he will probably require in running his government, including government policy," Yudhoyono said. The head of state is scheduled to hold a meeting with Jokowi on Wednesday evening in the sidelines of the 6th Global Forum of the United Nations Alliance of Civilizations. According to presidential staff for communication and politics, Daniel Sparringa, the president hoped to build a new tradition.

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