BI estimates economy to grow at 5.1 percent in 2016

Jakarta (ANTARA News) - Bank Indonesia has forecast that the economy will grow at 5.1 percent this year, Bank Indonesia Deputy Governor Perry Warjiyo stated.

"The economy is estimated to grow by only 5.1 percent this year," Perry Warjiyo said here on Monday.

The central bank of Indonesia (Bank Indonesia) revised down its projection for Indonesias economic growth in 2016 due to sluggish global economic growth and reduced government spending in the second semester of 2016.

The projection was 0.1 percent below the 5.2 percent target, set in the revised 2016 state budget.

Finance Minister Sri Mulyani Indrawati had earlier informed that the government would slash budget allocations to the State Enterprises Ministry in the draft 2017 state budget.

At a joint meeting with the House Commission VI here on Wednesday, Sri Mulyani, who represented the State Enterprises Minister, said the State Enterprises Ministry was allocated Rp243,86 billion in the draft 2017 state budget , a sum she considered too large compared to its realization in the previous years.

Based on the central governments 2015 financial statement, the realization of budget funds at the State Enterprises Ministry in 2015 had reached Rp124,755,920,998 or 84.25 percent of its budget ceiling of Rp148,720,203,000, she explained.

"Judging by its realization in 2015, the State Enterprises Ministry is likely to conduct self-blocking, meaning that its realization will stay at around Rp160 billion. Thats why the budget fund of Rp243 billion appears to be quite large," she elaborated.

"Since I hold dual position as the finance minister and the one delivering (the financial statement of) the State Enterprises Ministry, I will likely slash the budget myself," she disclosed.

However, she added that she will cut the budget after discussing it with and securing a seal of approval from the House Commission VI as the working partner of the State Enterprises Ministry.(*)