Jakarta – The Indonesian government and the budget committee of the nation's Parliament Monday agreed on a set of new assumptions that will be used to base the current state budget.
Hafiz Zawawi, the deputy chairman of the committee, said in a press release that the they had agreed to revise up the economic growth target to 6% this year from the original target of 5.4%, and inflation to 7.5% from 5.5%.
The budget will assume an average dollar exchange rate of IDR9,300, compared with IDR8,600 earlier, Zawawi said. The dollar closed at IDR9,590 Monday. The assumption for the average rate of Bank Indonesia's three-month Sertifikat Bank Indonesia notes remains at 8%.
The revised budget will also assume an average Indonesian crude oil price of $45 a barrel, up from $24 originally. The crude oil and condensate output estimate is still pegged at 1.125 million barrels/day, he said.
He didn't say why the government and the parliament committee opted for these assumptions.
Many analysts had said earlier that the original assumptions of the current state budget, which were drafted last year by the previous government and Parliament, were unrealistic.