IMF welcomes revised targets of RI's 2004 draft state budget<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The International Monetary Fund (IMF) supported on Friday
\nrevisions to the 2004 draft state budget by lawmakers, saying the
\nnew targets, including higher economic growth, were reasonable
\nand within expectations.<\/p>\n
Daniel Citrin, IMF Asia Pacific senior advisor, said that the
\neconomy would grow by around 4.8 percent next year, as agreed to
\nby the government and lawmakers.<\/p>\n
\"I think it's a good budget,\" Citrin said.<\/p>\n
\"We hope for growth at about that level because the economy is
\ncontinuing to recover, and growth prospects will be in line with
\nthe Indonesian government's target,\" he added.<\/p>\n
Citrin, who is currently in town to lead an IMF team to carry
\nout its final review on the country's economy, was commenting on
\nthe deliberation results on the draft budget, which saw revisions
\nto most of the figures and highlighted optimism that the economy
\nwould fare better than previously forecast.<\/p>\n
On Thursday, the House budget commission and the government
\ncompleted their deliberations on the draft, setting a higher
\ngrowth target, lower inflation and interest rates and a smaller
\nbudget deficit, than those proposed in August.<\/p>\n
The deficit is set at Rp 23.02 trillion, or 1.17 percent of
\nthe country's gross domestic product (GDP), smaller than the
\ngovernment's initial proposal of Rp 24.9 trillion, or 1.2 percent
\nof GDP.<\/p>\n
Total expenditure is set at Rp 373.3 trillion (US$44.18
\nbillion), up from the initial proposal of Rp 368.79 trillion,
\nwith revenue estimated at Rp 349.9 trillion against Rp 343.87
\ntrillion previously.<\/p>\n
Other final targets include 4.8 percent GDP growth, against
\n4.5 percent stated in the draft; inflation of 6.5 percent
\n(previously 7.0 percent); an average rupiah exchange rate of
\n8,600 to the dollar (Rp 8,700) and a three-month Bank Indonesia
\ninterest rate of 8.5 percent (9.0 percent). The oil price was
\nearmarked at $22 per barrel ($21 per barrel) with oil production
\nof 1.15 million barrels per day.<\/p>\n
During Thursday's hearing, it was revealed that the optimism
\nwas based on an assumption that the global economy would continue
\nto improve, which is expected to help boost investment and
\nexports, coupled with continued strong consumption at home due in
\npart to estimated high levels of spending during the political
\ncampaigns in the run-up to the general elections.<\/p>\n
Citrin's positive note should provide the government with more
\nconfidence in meeting those targets.<\/p>\n
Minister of Finance Boediono stressed that if the government
\nworked harder while the economy was also free from shocks, the
\neconomy next year could grow even more.<\/p>\n
If the country could secure smooth elections, investor
\nconfidence in the country would then rise accordingly, Boediono
\nsaid.<\/p>\n
For this year, the state budget has targeted the economy to
\ngrow by 4 percent.<\/p>\n
2004 Economic Growth Forecasts<\/p>\n
2003 2004<\/p>\n
World Bank 3.5% 4.0%<\/p>\n
ADB 3.4% 4.0%<\/p>\n
StanChart 3.8% 4.3%<\/p>\n
Mandiri 3.9% 4.2%<\/p>\n
State Budget 4.0% 4.8%<\/p>\n
Source: The Jakarta Post file<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/imf-welcomes-revised-targets-of-ris-2004-draft-state-budget-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }