Revised 2018 Economic Growth DPR Projection to 5.2-5.6 Percent

The House of Representatives (DPR), represented by Commission XI, and the government have reached an agreement on the 2018 macroeconomic assumptions. In this agreement, the DPR revised Indonesia's 2018 economic growth target to 5.2-5.6 percent, down from the government's target of 5.4-6.1 percent. According to Finance Minister Sri Mulyani, this change in the 2018 macroeconomic assumptions reflects a cautious approach to current conditions. Meanwhile, the 2017 State Budget (APBN) targeted economic growth of 5.1 percent.

The agreement on the 2018 macroeconomic assumptions between the government and the DPR sets the inflation target at 2.5-4.5 percent. The rupiah exchange rate is pegged at Rp 13,300-13,500 per US dollar, while the interest rate for 3-month State Treasury Bills (SPN) is set at 4.8-5.6 percent. The oil price (ICP) for next year is set at US$ 45-60 per barrel. The 2018 oil lifting target is 771-815 thousand barrels per day (bpd), while the natural gas lifting target is 1,194-1,235 thousand barrels of oil equivalent per day (boepd).

The government and the DPR also agreed on 2018 economic development targets, including an unemployment rate of 5.0-5.03 percent, a poverty rate of 9.5-10 percent, and a Gini ratio of 0.38. The Human Development Index (IPM) is targeted to reach 71.5.