Of the seven revised macroeconomic assumptions, the DPR’s Budget Committee could only not agree with the government’s revised rupiah exchange rate at IDR 11,700 per US dollar. At the end of negotiations, the rupiah was set at IDR 11,600 per US dollar in the RAPBN-P 2014.

Indonesian Macroeconomic Assumptions:

   State Budget
    Draft 2015
State Budget
      2014
 Revision State
   Budget 2014
 Realization
       2013
GDP Growth
annual percent change
      5.5 - 6.3          6.0            5.5         5.8
Inflation
annual percent change
        3 - 5          5.5            5.3         8.4
Exchange Rate
IDR/USD
 11,500-12,500      10,500         11,600      10,451
Treasury Bills Interest Rate
3-month, percent
      5.5 - 6.0          5.5            6.0         4.5
Crude Oil
USD $ per barrel
     100 - 105         105           105       105.7
Oil Lifting
thousand barrels per day
     830 - 900         870           818        825
Natural Gas Lifting
barrel of oil equivalent/day
  1,225 - 1,250       1,240         1,224       1,215

State revenue and grants have also been revised, although the Budget Committee could not agree with the government’s proposed revenue and grant income at IDR 1.597,72 trillion (USD $134.8 billion). Both institutions finally agreed to set it at IDR 1,635.37 (USD $138 billion).

Total state income gained through tax collection has been set at IDR 1,246.2 trillion. This involves IDR 1,072.37 trillion obtained through tax and the remainder from excise duties. This implies that the target for total tax collection has been reduced by IDR 37.82 trillion from the initial assumption in the 2014 State Budget.

Central government spending was agreed at IDR 1,280.36 trillion, or an increase of IDR 30.42 trillion from the assumption in the initial 2014 state budget. Meanwhile, transfers to the regional governments were agreed at IDR 596.5 billion, an increase of IDR 3.9 trillion from the initial 2014 State Budget.

With state spending exceeding IDR 1,876.8 trillion, while revenues and grants only reaches IDR 1,635.37, the government’s budget deficit amounts to IDR 241.49 trillion or 2.4 percent of Indonesia’s gross domestic product (GDP), lower than the original assumption at 2.5 percent of GDP.

Indonesian 2014 State Budget:

   Revised State
 Budget
2014 
 State Budget
        2014   
A. Total State Income
       1,635.4       1,667.1
 I. Domestic Income        1,633.1       1,665.8
   1. Tax Income        1,246.1       1,280.4
   2. Non-Tax Income          386.9        385.4
 II. Grants           2.3          1.4
B. State Spending        1,876.9       1,842.5
 I. Central Government Spending
       1,280.4       1,249.9
    Ministerial Spending          602.3        637.8
    Non-Ministerial Spending
         678.1        612.1
 II. Transfer to Regions          596.5        592.6

in trillion rupiah

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