Sri Mulyani Cuts The 2024 Economic Growth Target, What's Up, Ma'am?

Minister of Finance Sri Mulyani (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani said that the discussion of the latest 2024 State Revenue and Expenditure Budget Draft (RAPBN) set an economic growth target of 5.1 percent to 5.7 percent.

This figure shifts from the previous two assumptions that have been conveyed by the government. First, during the Central Development Coordination Meeting (Rakorangpus) in April, it set a target of 5.3 percent to 5.7 percent.

Second, this level did not change in mid-May by 5.3 percent-5.7 percent when the Minister of Finance conveyed the Macro Economic Framework and Fiscal Policy Principles (KEM PPKF) at the DPR Plenary Meeting. For this, the state treasurer gave an explanation.

"So the lower range reflects the increasing risk," he said while attending a working meeting with Commission XI of the DPR today, Thursday, June 8.

The Minister of Finance revealed that the growth targets made by the government are in line with several assessments of global institutions.

"(There is a possibility) the economy will weaken in the second half of this year and continue in 2024. So it is indeed better to reduce the lower limit from 5.3 percent to 5.1 percent," he said.

Furthermore, the Minister of Finance explained that the government also opens opportunities to correct the target for economic growth in 2024 which is 5.7 percent.

"Maybe the question is whether the upper limit is fixed? This is what we need to see in the future consistency like," he said.

The following is the latest macro assumption that the government and the DPR have successfully agreed on for the 2024 State Budget Draft.

2.5 percent inflation plus minus 1 percent

The rupiah exchange rate

IDR 14,700 - IDR 15,200 per US dollar

SUN flower rate 10 years 6.49 6.91 percent

ICP price of 75 US dollars 80 per barrel

Petroleum lifting of 615,000 640,000 barrels per day

Gas lifting of 1,030,000 1,036,000 barrels of oil equivalent per day.