The budget for 2015 was arrived at after assuming an economic growth rate of 5.8 percent, an inflation rate of 4.4 percent, rupiah exchange rate at Rp11,900 against the US dollar, and the rate of a three-month state bond at 6.0 percent.
Jakarta (ANTARA News) - The House of Representatives (DPR) passed the 2015 Budget Bill into law in a plenary meeting on Monday.

Speaking on behalf of the incumbent government, Finance Minister Chatib Basri said that the new budget provided for adequate fiscal room and a baseline to enable the incoming government to carry out its programs.

"We believe that several provisions in the 2015 budget---such as a baseline budget, a lower deficit and anticipatory measures (to curb any fiscal risks)---will leave room (for the incoming government) to implement its new policies and facilitate a better transitional process," he stated.

The budget for 2015 was arrived at after assuming an economic growth rate of 5.8 percent, an inflation rate of 4.4 percent, rupiah exchange rate at Rp11,900 against the US dollar, and the rate of a three-month state bond at 6.0 percent, the minister noted.

Other assumptions included Indonesia Crude Price (ICP) at US$105 per barrel, oil lifting at 900,000 barrels a day, and gas lifting at 1,248,000 barrels of oil equivalent per day.

The basic economic assumptions were set taking current developments and economic prospects consideration, as well as the challenges faced in 2014 and those likely to be faced in 2015, Basri explained.

Based on these, state revenue was set at Rp1,793.6 trillion, while state expenditures were set at Rp2,039.5 trillion, with a budget deficit of Rp245.9 trillion, or 2.21 percent of the Gross Domestic Product (GDP).

The target budget deficit set is Rp11.7 trillion less than what was proposed in the initial draft, where it was set at Rp257.6 trillion or 2.32 percent of the GDP.

"The drop in the deficit sends a positive signal to the people, stakeholders and business players at home and abroad. It showcases a more sustainable budget for 2015," the finance minister added.

With the deficit target, the government could significantly prevent a rise in any planned debts as it could help anticipate interest rate policies of the global economy.

Most of the state revenue is expected from domestic tax income set at Rp1,380 trillion, non-tax income at Rp410.3 trillion and grants at Rp3.3 trillion.

State expenditures include central government expenditures set at Rp1,392.4 trillion, with expenditures of ministries/state institutions set at Rp647.3 trillion and those of non-ministries/state institutions at Rp745.1 trillion. They also include funds transfers to regions and village funds at Rp674 trillion.

Moreover, subsidy expenditures comprise energy subsidy of Rp344.7 trillion, fuel oil subsidy of Rp276.1 trillion, electricity subsidy of Rp68.68 trillion and non-energy subsidy of Rp69.9 trillion.

The quota for subsidized gasoline was set at 46 million kiloliters, lower than the initial proposal of 48 million kiloliters, with the recovery cost set at US$16 billion.(*)

Editor: Heru Purwanto
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