"There is nothing worrisome with regard to the management of the budget," Nazara noted in Jakarta, Tuesday.
Nazara said the current depreciation of the rupiah`s exchange rate has exceeded the assumption set in the 2018 State Budget (APBN) at Rp13,400 per US dollar, and this condition has both positive and negative implications.
One of the biggest impacts is an increase in the burden of subsidies and interest payments on debt, although additional revenue is expected from the strengthening of the US dollar.
"The burden related to the exchange rate is in the subsidy, as we buy the (subsidized oil) from abroad. It is also related to the interest payment and the installments of principles and interest of debts," he noted.
Nevertheless, he made assurance that no serious problems existed that could disrupt the implementation of the APBN as a result of the weakening of the exchange rate due to the optimum management of revenue and expenditure.
"Its positive effect on receipts is still higher than its negative effect on spending," Nazara pointed out.
Nazara ensured that the government will continue to monitor the latest economic conditions as well as the movement of other macro assumptions in the APBN in order to take precautionary measures in case conditions deteriorate.
"We still need to observe and ascertain the situation, not just the state budget but also the economy as a whole," he stated.
According to Nazara, the government also observed its impact on other economic variables, such as inflation, the condition of society, or state companies.
Reported by Satyagraha
(A014/INE)
(T.A014/A/KR-BSR/B003)
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2018
