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Govt narrows 2017 growth assumption on slow global economy
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Finance Minister Bambang Brodjonegoro attends a hearing at the House of Representatives. (Tempo/-)
T
he government has narrowed its economic growth assumption for next year's state budget due to persistent slow global growth.
It is now expecting between 5.3 to 5.6 percent growth, from the previous 5.3 to 5.9 percent, Finance Minister Bambang Brodjonegoro told the House of Representatives Commission XI overseeing banking and finance Monday. The outlook is only slightly different with that of Bank Indonesia at 5.2 to 5.6 percent.
"We [previously] agreed to set a quite wide range to anticipate a global windfall but it seems the situation next year will not be very different from this year," said Bambang. Oil and commodity prices will move within a small range, China's economy will continue growing at around 7 percent, while it is still unsure whether the US' economic recovery will be followed by a rise in the Federal Reserve’s fund rate, he explained. Europe, he went on, would be busy with its own regional problems following the UK's decision to exit the European Union.
Meanwhile, repatriated funds from the tax amnesty program are projected to flow into the country in late December, with the impact being felt next year. "This could be a positive point of 2017's economic growth prospects," Bambang stated.
The government also revised its assumption of the rupiah against the US dollar into the same range as BI at Rp 13,300 to Rp 13,600 from the previous Rp 13,650 to Rp 13,900 on the back of the amnesty program and better economic growth.
