Distinctive Elements under the 2015 Draft State Budget, President Says

 
Fathan Qorib, Andin Aditya Rahman
 
The current government has included a number of distinctive elements into the recently drafted 2015 Draft State Budget (2015 RAPBN) which has been designed by the current government to allow the incoming government flexibility in carrying out its work programs.
 
The 2015 RAPBN also marks the implementation of a Constitutional Court decision, which took away the authority of the House of Representatives (House) to discuss and enact State Budgets under the State Finances Law.
 
This was affirmed by President Susilo Bambang Yudhoyono, who said that the 2015 RAPBN will act as momentum for implementing the Constitutional Court decision, which draws a more distinct line between the executive and legislative in discussing and supervising the State Budget.
 
“I’m certain that in the future the support for checks and balances by the House that are more strategic and constructive for the State Budget will strengthen the State Budget in achieving national objectives that we all aspire to,” said the President, during his annual message to the House, in Jakarta last Friday.
 
The President also stressed that the 2015 RAPBN is unique as although it is drafted by the current government it will be implemented by the new administration. In consideration of these circumstances, the 2015 RAPBN was intentionally drafted to set out baselines for the budgets of ministries and other government institutions.
 
“I hope that this step can provide wide room to move for the new government to carry out its planned work programs,” said the President.
 
Economic Assumptions for Next Year
In addition to 2015 RAPBN, during the annual message the President also explained a number of issues related to basic macroeconomic assumptions for 2015 that will act as foundations for the direction of the government’s work programs and policies.
 
Firstly, the 2015 RAPBN targets a growth rate of 5.6 percent for Indonesia’s economy next year. This is based on the assumption that the global economy will be in a state of turmoil in 2015. The next prediction is that the inflation rate will be maintained at 4.4 percent. Consequently, this must be supported by adequate supply and distribution of basic necessities, as well as improving teamwork between the Financial Services Authority (OJK) and Bank Indonesia (BI).
 
The third macroeconomic assumption underlying the 2015 RAPBN is for the exchange rate of the IDR against the USD, which is assumed to remain at IDR 11,900 per USD. This figure is based on an assumption of the normalization of monetary policies by the United States Federal Reserve, which will raise interest rates globally and put additional pressure on the IDR exchange rate.

Other economic assumptions relate to the oil and gas sector, including an Indonesian Crude Price (ICP) of USD 105 per barrel, as well as the total amount of oil and gas lifting next year. Crude oil lifting will reach 845 thousand barrels per day, whereas gas lifting is predicted to reach 1.248 million barrels per day.
 
(hot/kc)