GOVT TO CHANGE POSTURE OF 2009 BUDGET

Jakarta, Jan 14 (ANTARA) - The government will change the posture of the 2009 budget in connection with a change in a number of macro-economic indicators caused by the development in global as well as national economic conditions.

Acting coordinating minister for the economy Sri Mulyani Indrawati said at a press conference after a cabinet meeting at the presidential office here on Tuesday that the change in the budget posture was needed because the government had changed assumptions of economic growth, fuel price and rupiah exchange rate.
"We predict the economy will grow between 4.5 and 5.5 percent with projection set at five percent and because of that we will change the growth figure in the 2009 budget from formerly assumed at six percent to five percent," she said.
She said the price of oil which was formely assumed at US$80 per barrel in the 2009 budget would be changed into US$45 per barrel.
"The assumption of the rupiah exchange rate will be changed from Rp9,400 against the US dollar to Rp11,000 after we saw economic projections and conditions after global unheaval in the past three months," she said.
Assumptions for inflation, BI 3-month interest rate or oil lifting meanwhile will not change, she said.
Changes in the assumptions, according to her, will have a big impact on state income and expenditure.
"State income is predicted to drop by Rp128 trillion from Rp985.7 trillion to Rp857.7 trillion because of a lower economic growth, a change in the exchange rate and also incentives that make the state income to drop," she said.
She said the changes would cause a review of targets of state income for the 2009 budget such as the oil price that dropped from US$80 per barrel to around US$45 that would cause state income from oil and gas income tax revenue as well as non-tax revenue from the oil and gas sector to decline.
"Tax will also be lowered by Rp54 trillion from Rp725 trillion to Rp671.9 trillion and non-tax state revenue to Rp74.51 trillion due to a change in the oil price and exchange rate and a decline in dividend of state-owned companies particularly those connected with oil and gas," she said.