Saturday, 17 August 2019 11:32

President Joko Widodo Conveys the Macroeconomic Assumptions in 2020

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The annual session at Parliament Building, Friday, 16 August, 2019 The annual session at Parliament Building, Friday, 16 August, 2019 VOI-ADE

Towards the Fiscal Year 2020, the Government of Indonesia set macroeconomic assumptions delivered by President Joko Widodo, when delivering the Government's Statement on the Draft Law on State Budget for the 2020 Budget Year, along with its Financial Note in the Parliament Building, Jakarta on Friday (16 / 8). In his presentation, President Joko Widodo said that the macro assumptions for 2020 are prepared with the assumption of economic growth of 5.3 percent. Consumption and investment are the main drivers of the economy. In addition, according to him, inflation will be kept low at the level of 3.1% to support people's purchasing power.

Furthermore, President Joko Widodo said that the macroeconomic assumptions for 2020 are also formulated to deal with external conditions that are still overshadowed by uncertainty. However, the government is optimistic that investment flows will continue to flow into the country because of the positive perceptions of Indonesia.

"In the midst of external conditions that are still overshadowed by uncertainty, the Rupiah exchange rate is estimated to be in the range of Rp14, 400 per US dollar. The government believes that investment continues to flow into the country, due to positive perceptions of Indonesia and improvement in the investment climate. Thus, the 3-month SPN (Treasury Bills) interest rate is estimated at 5.4%,” said President Jokowi.

Furthermore, President Joko Widodo also said that the government set up macroeconomic assumptions in 2020 by continuing to monitor global dynamics, especially related to world oil price movements. By optimizing the use of natural resources, including oil and natural gas, President Joko Widodo also pointed out that the government prepares a macroeconomic assumption in 2020 with the target of lifting oil and gas in 2020 assumed to be 734 thousand barrels and 1.19 million barrels respectively oil equivalent per day. The President also explained that the whole outlooks of the estimated macroeconomic indicators above become the basis for the preparation of the 2020 Draft on State Budget. (VOI / Ndy / AHM)

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