Author Topic: Tempo English Version 2017, 07 - 13 August  (Read 1958 times)

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Tempo English Version 2017, 07 - 13 August
| August 08, 2017, 04:36:09 PM

2017, July 31 - August 06 --- Tempo

The government needs to focus on maintaining the credibility of the APBN. The markets will quickly react negatively to any signs that the government is making over-ambitious macroeconomic assumptions in the draft 2018 budget. For example, unrealistic projections of economic growth will damage market confidence in the government's ability to manage state finances in a rational way. Therefore, President Jokowi's political promises must not be the main consideration when drawing up the state budget. For example, we know that the government is targeting economic growth of 6-7 percent in 2019. Setting a macroeconomic assumption deliberately close to this target will put the government's credibility at risk. Looking at the global economy and drivers of economic growth such as domestic consumption, exports, investment and government spending, it seems it will not be easy to achieve this target.


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