Jakarta: Indonesian Minister of Finance Sri Mulyani Indrawati is optimistic that the Indonesian economy will rebound next year.
According to the former World Bank managing director, Indonesia's gross domestic product (GDP) is expected to grow around 4.5-5.5 percent in 2021.
"The target is quite realistic. It is based on various factors. We will also have a low baseline in 2020," the minister said during a plenary meeting at the Parliament Building in Central Jakarta on Tuesday.
Macroeconomic basis used as a calculation for the 2021 State Budget are economic growth in the range of 4.5 percent – 5.5 percent, inflation at 3 percent, 10-year Government Securities (SBN) interest rate at 7.29 percent, exchange rate at Rp14,600 per US Dollar, crude oil price at US$45 per barrel, oil lifting at 705,000 barrels per day and gas lifting at 1,007,000 barrels per day.
The 2021 State revenue is estimated at Rp1,776.4 trillion comprising tax revenues of Rp1,4081.9 trillion, non-tax state revenues of Rp.293.5 trillion and grants of Rp0.9 trillion.
Meanwhile, the 2021 state expenditures is estimated at Rp2,747.5 trillion and central government spending at Rp1,951 trillion with transfers to the regions of Rp796.3 trillion.
Therefore, budget deficit is estimated at the level of Rp971.2 trillion or 5.5 percent of GDP.