Jakarta (ANTARA News) - The House of Representatives (DPR) passed the 2018 state budget bill into law at its plenary meeting here on Wednesday.
Under the 2018 state budget law, state revenues are set at Rp1,894.7 trillion and state spending at Rp2,220.7 trillion.
All the 10 factions in the DPR delivered their views at the meeting, with the Greater Indonesia Movement (Gerindra) Party rejecting the passing of the 2018 state budget bill into law.
However, the Gerindra faction gave the government a chance to assure it of the posture of the state budget it has formulated.
Meanwhile, the Prosperous Justice Party (PKS) faction accepted the state budget with notes.
"Can the 2018 state budget bill be endorsed into a law?" DPR Deputy Chairman Taufik Kurniawan asked the participants of the plenary meeting.
"Agree," they answered.
The government, the budget committee, and the commissions at the House have been preparing the 2018 state budget bill since mid-2017 in accordance with the mandate of the 1945 Constitution.
Finance Minister Sri Mulyani Indrawati remarked that the government appreciated the support given by the DPR leadership and members, including the budget committee and all the commissions, which have worked together with the government, to implement the mandate of the constitution by deliberating the 2018 state budget bill intensively and constructively.
"May this achievement benefit the Indonesian nation to create prosperity and justice by continuing the development programs of the working cabinet, which were started three years ago," she noted, while delivering the governments final views at the meeting.
The theme of the 2018 fiscal policy is solidifying the fiscal management to accelerate the attainment of just growth, which means that the 2018 state budget is expected to serve as a fiscal instrument to boost economic growth as well as to support the efforts to alleviate poverty, reduce disparities, and create more jobs, she explained.
For its part, the government will pursue three fiscal strategies in 2018; first, optimizing state revenues by maintaining the investment climate; second, using budget efficiently and increasing productive budget to support priority programs; and third, encouraging efficient, innovative, and sustainable financing, she elaborated.
With the state budget law, the economic growth is set at 5.4 percent, inflation rate at 3.5 percent, interest rate on state treasury notes for three month deposit at 5.2 percent, and the rupiahs exchange rate against the US dollar at Rp13.4 thousand.
In the draft 2018 state budget, the budget deficit is projected at Rp326 trillion, or 2.19 percent, of the national gross domestic product.
To offset the budget deficit, the government plans to issue state bonds worth Rp414.52 trillion and make loans worth Rp15.5 trillion.
Source: ANTARA News