he 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. (bbn)
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