Indonesian govt sets revenue target at Rp1,737.6 trillion in 2017

Indonesian govt sets revenue target at Rp1,737.6 trillion in 2017

President Joko Widodo (Jokowi) in a Joint Session of Parliament, Jakarta, Tuesday (August 16, 2016) in commemorating the anniversary of independence for 71 of the Republic of Indonesia on August 17. (ANTARA/Akbar Nugroho Gumay)

I am convinced that with the trust and support of the people ..."
Jakarta (ANTARA News) - The Indonesian government has set a revenue target in its Draft 2017 State Budget at Rp1,737.6 trillion, expenditures at Rp2,070.5 trillion and the budget deficit at Rp332.8 trillion, or 2.41 percent of the gross domestic product (GDP).

"State revenue target in the draft 2017 state budget is set at Rp1,737.7 trillion," President Joko Widodo (Jokowi) stated while delivering the governments explanations on the Draft 2017 State Budget (RAPB N 2017) and its financial notes before the plenary session of the House of Representatives (DPR) at the Parliament Building here on Tuesday.

Explaining the revenue target, the president said tax revenues are set at Rp1,495.9 trillion and non-tax revenues (PNBP) at Rp240.4 trillion. "The non-tax revenue target is set at Rp240.4 trillion, although the government is facing heavy challenges as the prices of several mining commodities such as natural oil and coal are still low," the head of state noted.

He pointed out that the allocated Rp2,070.5 trillion expenditure included central government's expenditures worth Rp1,310.4 trillion and regional transfer and village funds valued at Rp760 trillion.

"With the various agenda and development goals that I have conveyed, the fiscal policy for 2017 is still expansive and targeted to increase production capacity while the budget deficit was targeted at Rp332.8 trillion or 2.41 percent of the GDP," he noted.

The president added that in general, the budget financing policy in 2017 will be directed to develop and optimize creative and innovative financing and at the same time increase financing access for micro-small-and-medium-scale enterprises (UMKM) and enhance financing access for development and investment.

Besides, it supports increased access for educational programs and housing development for low-income people, improving the quality of the government invesment plan and keeping the debt to GDP ratio within normal and controlled limits.

He stressed that the involvement of the private sector in development will be increased by enhancing cooperation between the government and businesses.

"I am convinced that with the trust and support of the people, the Indonesian government could perform better and be more effective in its efforts to achieve the common goals," he said.

The president also called on all sides to work together in making Indonesia an advanced and victorious nation with political sovereignty, economic independence and cultural dignity.