The growth is expected to be better in quality and inclusive to produce an improvement in the people`s welfare, the Minister said here on Friday.
"The target of the growth is directed toward creation of equitable growth all over Indonesia, by accelerating development mainly in eastern Indonesia, frontier areas, outer regions and backward areas," Sri Mulyani said speaking on macro economy and fiscal policy for the 2019 budget year at plenary session of the House of Representative here on Friday.
She said one of the steps taken to push up the economic growth is by giving priority to development of economic sectors with added value that the domestic market would be stronger and greater attention to improving productivity.
One of the economic sectors, which has added value is digital economy based industry that needs the support of good quality and productive, innovative and competitive human resources, she added.
In addition, the momentum of growing investment and exports have to be maintained by abolishing restrictive regulations in the center as well as in the regions and reform in taxation system and labor sector, she said.
"The government is designing various attractive and competitive fiscal incentive policies to motivate investment and exports," Sri Mulyani said.
Sri Mulyani said the country`s inflation target is set at 3.5 percent more or less 1 percentage point , low enough to keep the people`s purchasing power at a healthy level to push up household consumption.
"In keeping inflation under control, the government will maintain balance between supply and demand. In order to maintain the availability of supply of goods especially foods. The government will continue to increase the national production capacity," she said.
The rupiah value is expected to average 13,000-14,000 per dollar in 2019 amid challenge in maintaining stability in exchange rate.
Sri Mulyani said rupiah exchange rate fall does not always means negative to the country`s domestic economy as falling rate of rupiah could boost export and economic growth.
"The government and Bank Indonesia will continue to manage economic stability and exchange rate to cope with volatility, which will disrupt business and economic activities," the minister said.
The targets used to calculate the 2019 state budget are the interest rate of 3-month treasury bonds is 4.6 percent-5.2 percent, the price of the Indonesia oil (ICP) is US$60 -US%70 per barrel, oil lifting at 722,000-805,000 barrels per day and gas lifting at 1,210,000-1,300,000 barrels oil equivalent per day .
"In 2019, the world`s crude oil price is predicted to increase on growing demand to follow the global economic recovery," Sri Mulyani said.
Meanwhile, the theme of fiscal policy in 2019 is State Budget, to boost investment and improve competitiveness, with strategy to follow mobilization of realistic income , quality spending and efficient and sustainable financing.