Indonesia's 2016 budget to assume lower economic growth of 5.8-6.2%

[JAKARTA] Indonesia's 2016 state budget is going to be based on the assumption that the economy will grow by between 5.8 to 6.2 per cent, less than earlier estimates, its finance minister said on Wednesday.

"Investment activity, especially in infrastructure, will be the main driver (for growth)," Finance Minister Bambang Brodjonegoro told the first parliament meeting to discuss the 2016 budget.

In a planning meeting in late April, the government initially said growth in 2016 would reach 6.4-6.6 per cent.

He said the budget will also assume inflation at 4 per cent, similar to earlier assumptions.

Assumptions on exchange rates and oil and gas production have also been kept.

The government sees a budget deficit of 1.7 to 2.1 per cent of gross domestic product.

REUTERS