Indonesia’s 2017 Budget Seeks Cautious Economic Expansion
Negara, Siwage Dharma | September 2016
Abstract
At the start of his presidency, the then-newly elected President Joko ‘Jokowi’ Widodo promised to achieve seven percent annual growth within the next three years.1 Almost two years later, this target seems hard if not impossible to achieve amidst global economic uncertainties and a lacklustre domestic performance. The economy is now struggling to not fall below the five percent growth rate, a critical threshold for keeping Indonesia’s 130 million workers gainfully employed. In fact, a five percent growth rate is actually barely sufficient in supporting Indonesia’s ambition to eradicate extreme poverty. Around 11 percent of the total population are still living in poverty and mostly in rural areas.2 Moreover, Indonesia is suffering a huge income inequality. According to its Statistics Agency (BPS), the country’s Gini coefficient, an indicator of income distribution, has worsened in recent years.3
In order to boost short-term growth, Indonesia relies on public sector spending, which is mainly directed towards infrastructure and social assistance programmes. However, given weaker-than-expected revenues in recent years, there is a risk that the government’s fiscal capacity will be increasingly limited going forward.
Citation
Negara, Siwage Dharma. 2016. Indonesia’s 2017 Budget Seeks Cautious Economic Expansion. © ISEAS Yusof Ishak Institute. http://hdl.handle.net/11540/9154.ISSN
2335-6677
Keywords
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
Macroeconomic Stabilization
Results-Based Monitoring And Evaluation
Project Evaluation & Review Technique
Project Evaluation
Program Evaluation
Performance Evaluation
Operations Evaluation
Evaluation Methods
Evaluation
Social condition
Economic dependence
Economic assistance
International monetary relations
International monetary relations
International trade
National accounting
Market
Project impact
Development projects
Program management
Performance appraisal
Project appraisal
Technology assessment
Exchange
Comparative economics
Index number
Monetary policy
Value analysis
Adjustment cost
Transaction cost
Conditionality
International relations
Cumulative effects assessment
Grievance procedures
Participatory monitoring and evaluation
Exchange rate
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Citable URI
http://hdl.handle.net/11540/9154Metadata
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