The House of Representatives Assesses the 5.2 Percent Economic Growth Target in the 2024 Draft State Budget to be Very Optimistic

JAKARTA - In a speech delivering the 2024 State Budget Bill and Financial Notes at the DPR RI Plenary Meeting at the MPR/DPR/DPD Building, Jakarta, Wednesday, President Joko Widodo (Jokowi) revealed that Indonesia's economic growth over the last seven quarters, since the end of 2021, consistently above 5.0 percent.

The poverty rate is also said to have decreased to 9.36 percent in March 2023, from its peak during the pandemic in September 2021 which was recorded at 10.19 percent.

The extreme poverty rate also fell from 2.04 percent in March 2022 to 1.12 percent in March 2023.

Jokowi predicts Indonesia's economic growth next year will reach 5.2 percent with macroeconomic stability that is maintained.

In terms of inflation, the president continues to optimize the role of the State Budget to mitigate inflationary pressures caused by climate change and external shocks. Inflation is predicted to be maintained at around 2.8 percent

Member of Commission I DPR RI Muhammad Farhan views the economic growth target of 5.2 percent and other targets that the government wants to achieve in the 2024 Draft State Revenue and Expenditure Budget (RAPBN) very optimistic.

"Inflation of 2.8 percent will definitely be achieved. The rupiah exchange rate of IDR 15,000 per US dollar will definitely be achieved," Farhan said when met by ANTARA after the Annual Session of the Indonesian People's Consultative Assembly (MPR), Joint Session of the House of Representatives (DPR)-Regional Representative Council (DPD RI), 2023 DPR RI Plenary Session at the MPR Building DPR/DPD, Jakarta, Wednesday, August 16.

However, he views the government's estimate of the price of Indonesian crude oil at around USD 80 per barrel to be unrealistic due to fluctuations in world oil prices and the ongoing war of oil producers, especially those from the Middle East and the North Sea.

The member of the DPR RI from the Nasdem Party faction also considers the oil lifting target which is estimated to reach 625 thousand barrels per day is a concern.

"This means that we were close to 50 percent of oil lifting before we faced the monetary crisis. Before the monetary crisis, we (lifted oil) were over a million barrels per day, and now it is 625 thousand barrels per day which is very worrying," he said as quoted by ANTARA.