JAKARTA. Finance Minister Sri Mulyani predicts that Indonesia's economy will grow by 2.2%, even though the government has widened the State Budget deficit to 6.27% of GDP, as part of the National Economic Recovery (PEN) program.
She explained in a teleconference earlier this week that economic growth would still be in accordance with the baseline scenario, which is 2.3% in a heavy scenario and minus 0.4% in a very heavy scenario.
The government also revised a number of macroeconomic assumptions in the state budget, including inflation rate which was changed to the range of 2% - 4%. Another revision is that the rupiah exchange rate assumption, which was changed to the range of Rp. 14,900-Rp. 15,500 per US dollar.
Meanwhile, the price assumption for Indonesian Crude Oil (ICP) was corrected to US$ 30- US$ 35 per barrel, from the previous US$ 38. (AM/AR)