Jakarta: The Institute for Development Economic and Finance (Indef) has predicted that Indonesia's budget deficit could reach around 2.19 percent of the gross domestic product (GDP) by the end of this year.
"This achievement is primarily influenced by increasing state revenue and diversion of energy subsidy," Indef economist Bhima Yudhistira told Medcom.id on Wednesday, December 26, 2018.
"Our economic growth is likely to reach around 5.1 percent," Bhima said.
According to the government, the state revenue is expected to reach Rp1,936 trillion this year. Meaning, the realization is Rp42 trillion higher than the initial target.
"The state revenue would grow 19.2 percent. The tax revenue would grow 15.2 percent," Finance Minister Sri Mulyani Indrawati told reporters early this month.
"The customs and excise revenue would grow 14.7 percent. The non-tax state revenue would grow 28.4 percent," Sri Mulyani said.
According to the Central Statistics Agency (BPS), Indonesian economy grew by 5.17 percent year-on-year in the third quarter of 2018. Cumulatively, the economy also grew by 5.17 percent in the first three quarters of 2018.