House approves 2020 economic growth target of 5.5%

House approves 2020 economic growth target of 5.5%

Government representatives in a meeting with the House of Representative's Budget Agency in Jakarta on Monday ( July 8, 2019). (ANTARA/Indra Arief Pribadi)

The outcomes of this meeting are subject to further discussion and include the basic pillars of the 2020 State Budget Bill, along with relevant financial data
Jakarta (ANTARA) - The Budget Academy of the Indonesian House of Representatives (DPR) approved an economic growth target of between 5.2 percent and 5.5 percent for 2020, based on the macro-economic predictions of the 2020 Draft State Budget.

The approval was made during a meeting between the DPR Budget Agency, the Ministry of Finance, the Bank of Indonesia and the Ministry of National Planning and Development, which was held in Jakarta Monday.

"The outcomes of this meeting are subject to further discussion and include the basic pillars of the 2020 State Budget Bill, along with relevant financial data," the meeting's chairman, Kahar Muzakir said.

The meeting also discussed several key issues, such as national macro-economic predictions, related macro-fiscal frameworks, such as state revenues and expenditures, and national development targets for 2020.

The parliament approved the government's proposed economic growth target, which is estimated to range from 5.2 percent to 5.5 percent, John Kenedy Azis (Member of the House Representative's Budget Agency) explained, adding that the government also estimates annual inflation to be two percent to four percent while the exchange rate of the Rupiah (Rp) against the US dollar is expected to be between Rp14,000 and Rp14,500 per dollar.

Regarding national development targets for 2020, the unemployment rate is estimated to be between 4.8 percent to 5.1 percent, and poverty rate from 8.5 percent to 9.5 percent, and Gini ratio from 0.375 to 0.380, and human development index at 72.51 percent.

During the meeting, Sri Mulyani Indrawati (Minister of Finance) expressed his appreciation for the key role of the DPR Budget Agency in developing the initial plan of the Draft State Budget, before it is finalized as the 2020 State Budget.

"We would like to thank all the working committees. We will take all inputs into account. If there are any changes, we will certainly declare them," Indrawati said. (INE)

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