CAD EXPECTED TO GO DOWN IN Q4 0F 2018

by Andi Abdussalam

Jakarta, Nov 11 (Antara) - The high  current account deficit (CAD) of 8.8 billion or about 3.37 percent of the Gross Domestic Product (GDP) in the third quarter of 2018 is expected to decline in  the fourth quarter of the year.          According to Chief Economic Minister Darmin Nasution, the effectiveness of the government's policy in boosting exports and reducing imports to narrow the deficit of the current account could be seen in the fourth quarter.          The relatively high economic growth which reached 5.17 percent in the third quarter of 2018 had triggered increase in the demand for imported goods and widened the current account deficit.          The current account deficit in the third quarter of 2018 was recorded at 8.8 billion, or about 3.37 percent of GDP. This was higher than  the CAD in the second quarter which was only $8.0 billion or 3.02 percent of the GDP.         Finance Minister Sri Mulyani Indrawati said that one of the causes of the high current account deficit in quarter III of 2018 was the increasing demand for imported goods. Import value in the period was recorded at US$49.72 billion.

GOVERNMENT SETS HIGH DEFICIT RATE TO BOOST ECONOMIC GROWTH

by Andi Abdussalam

Jakarta, Aug 18 (Antara) - The budget deficit for 2017, set by the government and announced by President Joko Widodo (Jokowi) before the parliament on Tuesday, is relatively high, reaching 2.41 percent of the gross domestic product (GDP).          The budget deficit is set at a high rate amounting to Rp332.8 trillion as state revenues are tight, while the pace of development and economic growth should continue to be maintained and boosted.          While delivering the Draft 2017 State Budget and its Financial Notes before the plenary session of the House of Representatives in Jakarta on Tuesday, President Jokowi unveiled the government's budget plan for 2017, with a total expenditure of Rp2,070.5 trillion, revenue of Rp1,737.7 trillion, and deficit of Rp332.8 trillion.         According to Finance Minister Sri Mulyani Indrawati, the government has set a relatively high budget deficit as it wants to maintain the momentum of economic growth.        "The deficit is huge as state revenues are tight. However, we do not want to reduce expenditures since we have to maintain the momentum and accelerate economic growth," Sri Mulyani stated at a press conference on the Draft 2017 State Budget on the occasion of the 71st anniversary of Indonesian Independence.

RI TO CUT OIL IMPORT, PROMOTE USE OF BIOFEULS

By Andi Abdussalam

Jakarta, Aug 27 (Antara) - Indonesia is taking steps to reduce its fuels imports and promote the use of biofuels at home in response to its current account deficit and the depreciation of its rupaih currency against the US dollar.         Besides cutting oil and gas imports, the Indonesian government, through a package of economic policies it announced last weekend, is also boosting its exports to help cover its deficit.         "Right now, we need an immediate solution to the current account deficit. The government will overcome the deficit by reducing imports, particularly fuel oils," Chief Economic Minister Hatta Rajasa told a press conference on Monday.          Seasonal external and internal factors as well as falling prices of export commodities overseas have been believed to contribute to widening of the current account deficit  from US$5.8 billion  or 2.6 percent of the country's GDP in the first quarter this year to US$9.8 billion in the second quarter or 4.4 percent of the GDP.