Indonesia’s 2017 Growth Rate Could Top Target: Finance Minister – 30 May 2017

  • Indonesian Finance Minister Sri Mulyani Indrawati said on 30 May 17 that economic growth in 2017 could top the current official target, thanks to better trade numbers and investment than in 2016.
  • Indrawati said growth of 5.3% is possible, and the government plans to revise the 2017 state budget to change the current target of 5.1%. Still, the minister said she would continue using a range of 5.1-5.3% for the growth outlook.
  • The government wants to revise the 2017 budget not only to reflect a higher growth forecast but higher oil prices — which Sri Mulyani said might average USD50 a barrel in 2017, above the current assumption of USD45.
  • The changes would mean more revenue from the oil sector, but also result in bigger subsidy bills for electricity and LPG. Still, she said she expects a net revenue increase of IDR15tr (USD1.13bn). At the same time, Indrawati said total tax revenue may not grow as much as the government initially anticipated.
  • The approved budget assumes a 16% rise in tax revenue, and she said now the increase is likely to be 13%. The proposed budget revisions will be submitted to parliament in Jun 17, she said.