Indonesia’s economy projected to grow at 5.2 per cent next year – Jokowi

Indonesia’s economy projected to grow at 5.2 per cent next year – Jokowi

JAKARTA,  (Bernama) — Indonesia’s economy is projected to achieve a growth rate of 5.2 per cent next year, considering both its economic potential and the risks involved, President Joko Widodo said.

In his final state budget speech in Parliament here today, the leader, affectionately known as Jokowi, highlighted the economy continued to expand 5.1 per cent during the first six months of 2023.

“The stability of the macro economy will continue to be maintained,” he said, adding that a peaceful environment leading up to the 2024 elections is crucial for boosting short-term economic confidence.

Jokowi’s administration projects an average exchange rate of 15,000 rupiah per US dollar and an estimated crude oil price of US$80 per barrel in 2024.

Inflation is targeted at 2.8 per cent and unemployment will be reduced to between 5.0 per cent and 5.7 per cent and the poverty rate to a range of 6.5 per cent to 7.5 per cent.

Jokowi’s 2024 budget focuses on economic dynamics, challenges and development support, aiming to accelerate economic transformation, maintain sustainable growth and protect purchasing power.

To achieve this, a budget of 3,304.1 trillion rupiah (RM1 trillion) is proposed, with estimated revenue of 2,781.3 trillion rupiah and a deficit of 2.29 per cent of the gross domestic product.

Allocations include 660.8 trillion rupiah, equivalent to 20 per cent of the budget for enhancing human capital through education, and healthcare receives 186.4 trillion rupiah or 5.6 per cent of the budget.

For social protection, 493.5 trillion rupiah is allocated to alleviate poverty and enhance long-term human capital development.

The infrastructure budget is 422.7 trillion rupiah and the food security budget is set at 108.8 trillion rupiah, prioritising food availability, domestic production, support for farmers, and food-related infrastructure.

Jokowi also said the budget is proposing a rise in the salary of civil servants, military and police personnel by eight per cent and 12 per cent for retirees.


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