Government and Parliament Agree on Indonesian Revised 2014 State Budget

Of the seven revised macroeconomic assumptions, the DPR’s Budget Committee could only not agree with the government’s revised rupiah exchange rate at IDR 11,700 per US dollar. At the end of negotiations, the rupiah was set at IDR 11,600 per US dollar in the RAPBN-P 2014.

Indonesian Macroeconomic Assumptions:

	State Budget     Draft 2015	State Budget       2014	Revision State    Budget 2014	Realization        2013
GDP Growth annual percent change	5.5 - 6.3	6.0	5.5	5.8
Inflation annual percent change	3 - 5	5.5	5.3	8.4
Exchange Rate IDR/USD	11,500-12,500	10,500	11,600	10,451
Treasury Bills Interest Rate 3-month, percent	5.5 - 6.0	5.5	6.0	4.5
Crude Oil USD $ per barrel	100 - 105	105	105	105.7
Oil Lifting thousand barrels per day	830 - 900	870	818	825
Natural Gas Lifting barrel of oil equivalent/day	1,225 - 1,250	1,240	1,224	1,215

State revenue and grants have also been revised, although the Budget Committee could not agree with the government’s proposed revenue and grant income at IDR 1.597,72 trillion (USD $134.8 billion). Both institutions finally agreed to set it at IDR 1,635.37 (USD $138 billion).

Total state income gained through tax collection has been set at IDR 1,246.2 trillion. This involves IDR 1,072.37 trillion obtained through tax and the remainder from excise duties. This implies that the target for total tax collection has been reduced by IDR 37.82 trillion from the initial assumption in the 2014 State Budget.

Central government spending was agreed at IDR 1,280.36 trillion, or an increase of IDR 30.42 trillion from the assumption in the initial 2014 state budget. Meanwhile, transfers to the regional governments were agreed at IDR 596.5 billion, an increase of IDR 3.9 trillion from the initial 2014 State Budget.

With state spending exceeding IDR 1,876.8 trillion, while revenues and grants only reaches IDR 1,635.37, the government’s budget deficit amounts to IDR 241.49 trillion or 2.4 percent of Indonesia’s gross domestic product (GDP), lower than the original assumption at 2.5 percent of GDP.

Indonesian 2014 State Budget:

	Revised State  Budget 2014	State Budget         2014
A. Total State Income	1,635.4	1,667.1
I. Domestic Income	1,633.1	1,665.8
1. Tax Income	1,246.1	1,280.4
2. Non-Tax Income	386.9	385.4
II. Grants	2.3	1.4
B. State Spending	1,876.9	1,842.5
I. Central Government Spending	1,280.4	1,249.9
Ministerial Spending	602.3	637.8
Non-Ministerial Spending	678.1	612.1
II. Transfer to Regions	596.5	592.6

^{in trillion rupiah}

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