Finance Minister Sri Mulyani Indrawati on Friday announced that Indonesia’s economic growth in 2019 is projected to reach between 5.4 and 5.8 percent. This year's projection was 5.4 percent as stated in the 2018 state budget.

She was speaking when announcing the 2019 macroeconomic and fiscal basic policy before House of Representatives lawmakers.

Growth will be supported by household and non-profit consumption (5.1 to 5.2 percent), gross fixed capital formation (7.5 to 8.3 percent), government consumption (2.8 to 3.7 percent), exports (6 to 7 percent) and imports (6.3 to 7.6 percent), she said.

The country needs to maintain the momentum of growth in investment and exports through the elimination of regulations that could hamper investment, she said, adding that the government would continue to reform taxation and manpower regulations.

“The government is also designing various fiscal incentives that are more attractive and competitive, in order to increase investment and encourage export,” Sri Mulyani added as reported by kontan.co.id.

Meanwhile, to maintain public purchasing power, the government will work to keep inflation low at 3.5 percent, plus or minus 1 percent, she said.

To control inflation, the government will try to ensure smooth food supplies by increasing national production, she said, adding that the government will also allocate food subsidies and reserves for low-income families.

Below are key basic macroeconomic assumptions:

Economic growth: 5.4 to 5.8 percent.

Inflation: 2.5 to 4.5 percent.

Currency exchange rate against the United States dollar: Rp 13,700 to Rp 14,000.

Three-month treasury bills (SPN) rate: 4.6 to 5.2 percent.

Indonesian Crude Oil (ICP): US$60 to $70 per barrel.

Oil lifting: 722,000 to 805,000 barrels per day. (bbn)