Indonesia's Economy Grew by 5 Percent in 2017

Indonesia's economy is targeted to grow by 5.1 percent in the 2017 State Budget. This is based on assumptions of an exchange rate of Rp13,300 per US dollar, an inflation rate of around 4 percent, and a 3-month State Treasury bill interest rate of 5.3 percent. Meanwhile, the crude oil price is assumed at US$45 per barrel, with oil lifting reaching 815,000 barrels per day and gas lifting reaching 1,150,000 barrels per day.

Several international financial institutions also project Indonesia's economic growth in 2017 to be above 5 percent. Indonesia's macroeconomic fundamentals remain quite strong, with controlled inflation, a relatively stable rupiah exchange rate, and domestic economic growth in 2016 remaining around 5 percent. Indonesia's trade and balance of payments are also improving.