ASEAN KEY DESTINATIONS
Govt, House agree to 5.1% growth assumption for 2017
The government and House of Representatives have agreed on the economic growth assumption for 2017 at 5.1 percent, the same figure as this year after being revised.
During a hearing between the House's Commission XI overseeing finance and banking affairs, Bank Indonesia (BI), the Finance Ministry, the Central Statistics Agency (BPS) and the National Development Planning Board (Bappenas) on Wednesday, the House initially proposed a 5.05 percent growth assumption.
Meanwhile, the government proposed a 5.3 percent assumption during financial notes in August, but the ministry revised it down to 5.2 percent.
"The growth assumption of 5.05 percent will create pessimistic public perception, but I can agree with 5.1 percent," Minister Sri Mulyani Indrawati said.
Bank Indonesia Governor Agus Martowardojo said the 5.1 percent was a realistic target, as the tax amnesty income was still sluggish. To date, income from the tax amnesty program has only reached Rp 4.7 trillion, while BI predicted it would reach Rp 21 trillion by March.
Other than the economic growth assumption, the House also wanted the government to revise up the unemployment and poverty rates. The government’s unemployment rate assumption is 5.6 percent, while poverty at 10.5 percent, but the House wants to revise them to 5.0 and 10.0 percent, respectively.
But Sri Mulyani said it would be difficult to slash both rates, as poverty had already reached “core inflation”, and financial, education and health plans should be introduced.
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Indonesia to launch 13th economic package this month
Coordinating Economic Minister Darmin Nasution said on Wednesday that the government would release its 13th economic policy package in August, adding that the draft had been completed.
Darmin said the 13th package was largely an extension of the previous one, but would expand its focus beyond industry. The 12th package focused on small and medium enterprises.
"We are just waiting to schedule a meeting with the president," Darmin told reporters at his office. He refused to give the exact date the new policy package would come into effect.
The ministry team must meet with President Joko "Jokowi" Widodo one more time to finalize the details, Darmin said.