SBY Announces Faster Growth Target, New Factor in State Budget

By Erwida Maulia on 07:04 pm Aug 16, 2012
Category News, Politics

President Susilo Bambang Yudhoyono delivers his annual budget address to lawmakers at the House of Representatives in Jakarta on Aug. 16. (Antara Photo/Yudhi Mahatma)

President Susilo Bambang Yudhoyono delivers his annual budget address to lawmakers at the House of Representatives in Jakarta on Aug. 16. (Antara Photo/Yudhi Mahatma)

President Susilo Bambang Yudhoyono announced on Thursday evening the government’s target of 6.8 percent economic growth for 2013 and its decision to include a new factor in calculating the state budget.

In his annual budget address, the president said the government would factor gas lifting into the macroeconomic assumptions used to calculate the state budget, along with six other assumptions regularly used in the past.

Indonesia’s growth forecast of 6.8 percent for next year is higher than the target this year of between 6.3 percent and 6.5 percent. The economy grew by 6.5 percent in 2011.

The 2013 inflation rate is targeted at 4.9 percent, only slightly higher than this year’s target of 4.8 percent, while the three-month treasury bill (SPN) rate is expected to stand at 5 percent.

The rupiah is expected to reach an average of Rp 9,300 per dollar, with the price of oil at an average of $100 per barrel and oil lifting reaching 900,000 barrels per day.

“In addition to the six macroeconomic assumptions, starting with the 2013 state budget draft, the government will also use gas lifting as a basis for the calculation of state revenue from non-oil natural resources,” Yudhoyono said in front of members of the House of Representatives in Jakarta.

“In 2013, we assume that gas lifting will be at around 1.36 million barrels of oil equivalent per day,” he added.