Indonesian key parliamentary body approves 2016 GDP target at 5.2%

[JAKARTA] An Indonesian parliamentary committee on Tuesday approved the government's 2016 economic growth target at 5.2 per cent, slightly lower than the initial 5.3 per cent.

The budgetary committee also approved other assumptions which the revision to the 2016 state budget would be based on, including a lower average price for Indonesian crude oil and a stronger exchange rate.

Based on that, the committee and the government reduced the target for 2016 revenue to 1,786.2 trillion rupiah (S$180.67 billion) from the initial target of 1,822.5 trillion rupiah.

They set the tentative budget deficit at 2.35 per cent of gross domestic product (GDP), bigger than the 2.15 per cent in the original budget, but smaller than the proposed 2.48 per cent.

The committee approved 41 trillion rupiah of additional bond issuance in 2016 to cover the widening deficit.

The budget is due to be approved by parliament in the coming weeks after further discussions about state spending.

REUTERS