Government is still optimistic and expects a boost in state revenues amid current global uncertainty. On 2019 budget draft, government sets the realized state revenue to reach 60.8% of target. Trade deficit by August was also lower year on year (y/y). More, primary balance has a surplus of more than 10 trillion.
Government sets economic growth at 5.3% in 2019 budget draft, slightly lower than the government’s target for this year. State spending is set at Rp2439.7 trillion, an increase of 10.7% from this year, which will be funded by state revenues of Rp2142.5 trillion (+14%) and lower budget deficit of 1.84% (against 2.19% of GDP this year). While the budget looks more expensive, the government anticipates global economic uncertainties would weigh higher economic growth.
