Indonesia to lower 2016 growth target to 5.1%

Jakarta

THE Indonesian parliament is set to revise down this year's economic growth target amid slowing domestic consumption and signs that a shortfall in tax revenue will sap public spending.

Ahmadi Noor Supit, head of the house's finance commission, set the forecast at 5.1 per cent, compared with 5.3 per cent in the current state budget, after a debate that extended late into Tuesday evening. That was the middle ground between Finance Minister Bambang Brodjonegoro's 5.2 per cent proposal, the central bank's 5.1 per cent and lawmakers who called for 5 per cent. Gross domestic product increased 4.79 per cent last year, the least since 2009.