Durian. The government of Indonesia expects economic growth in 2021 will be in the range 4.5-5.5 percent with inflation rate at 3 percent, President Joko Widodo said in 2021 budget proposal before members of the House of Representatives (DPR), the Regional Representatives (DPD) and the People’s Consultative Assembly (MPR) on Aug.14.
The optimist economic growth is based on the government calculation that it will be supported by the increasing of domestic consumption and investment. While inflation will be kept at 3 percent to support purchasing power.
Indonesian rupiah is forecast will be in the range of 14,600 against 1 US dollar and crude oil price at $45 per barrel.
Lifting oil and natural gas is forecast at 705,000 and 1.7 million barrel per day consecutively.
Previously the government has issued a preventive policy which on deficit relaxation for three years from 2020-22 above 3 percent from GDP.
The budget proposal is based on current global situation of covid-19 pandemic that has impacted all sectors and affected economy globally.
Education will get 20 percent of total 2021 state budget or Rp 549.5 trillion ($37.2 billion).
For health sector, the government will spend Rp 169.7 trillion or 6.2 percent from total budget that to be used to various activities including for vaccine production and national health insurance.
Indonesia expects 2021 income as much as Rp 1,776.4 trillion which will be from tax of Rp 1,481.9 trillion and the rest to be from non-tax sector.
