2018, Economic Growth Targeted at 5.4-6.1 Percent

In the 2018 State Budget draft, the government set the assumption of next year's economic growth in the range of 5.4-6.1 percent. This figure is higher than the 2017 target of 5.1 percent. Since 2000, Indonesia's highest economic growth was recorded in 2011, reaching 6.5 percent.

Finance Minister Sri Mulyani stated that to achieve this target, both foreign (FDI) and domestic (DDI) investment must grow above 20 percent. Furthermore, various economic sectors such as banking credit, state-owned enterprises (SOEs) capital expenditure, and companies listed on the stock exchange must also increase. All growth engines must work; otherwise, the economic driving force will certainly decrease. To achieve growth of up to 6.1 percent, the government cannot rely solely on APBN financing.

In the draft, inflation is targeted in the range of 2.5-4.5 percent, the rupiah exchange rate in the range of Rp 13,600-13,900 per US dollar. The State Treasury Securities interest rate is 4.8-5.8 percent, and the oil price is in the range of US$ 45-60 per barrel. Oil lifting is targeted at 771-815 thousand barrels per day and gas lifting at 1,194-1,235 barrels of oil equivalent per day.