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Jokowi sets 2020 growth target at 5.3 percent
Jokowi left exports out of the equation, even though he has said on numerous occasions that exports and investments are the two keys to Indonesia's growth.
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Finance Minister Sri Mulyani Indrawati (center), accompanied by Deputy Finance Minister Mardiasmo (left), talks to a legislator after presenting fiscal policy principles as part of the 2020 state budget in this file picture. (Antara/Puspa Perwitasari)
P
resident Joko “Jokowi” Widodo has set an economic growth target of 5.3 percent for the proposed 2020 state budget, similar to this year’s target.
The current administration, which will conclude its term in two months, set the figure by taking into account continuing global uncertainties, with Jokowi specifically mentioning the US-China trade war and depreciating Chinese renmimbi and Argentinian peso.
The figure is unchanged from this year’s state budget that Jokowi proposed in August last year.
By the first half of 2019, GDP growth was below the target, however, as it stood at 5.06 percent.
“Consumer spending and investments will be the main motors of growth,” Jokowi, who will assume his second presidential term in October, said in his financial note speech elaborating on the budget proposal before lawmakers at the House of Representatives on Friday.
Jokowi left exports out of the equation, even though he has said on numerous occasions that exports and investments are the two keys to Indonesia's growth.
Meanwhile, the inflation rate was set at 3.1 percent, lower than last year’s forecast of 3.5 percent.
As of the first half this year, year-to-date inflation reached 3.28 percent.
