Indonesia’s Widodo proposes $186 billion, 5.5% of GDP deficit 2021

YAKARTA (Reuters) – Indonesia’s President Joko Widodo on Friday proposed to parliament a budget of 2,747.5 trillion rupees ($186.08 billion) by 2021 and pledged to continue his efforts for the economy amid the uncertainty surrounding the coronavirus pandemic.

The proposed budget, which represents a 0.3% accumulation of this year’s spending plans, assumes that expansion in Southeast Asia’s largest economy will recover to 4.5% -5.5% in 2021, following an official forecast for near-stable expansion this year.

The proposal assumes a budget deficit of 5.5% of GDP, a decrease of 6.34% expected in 2020.

“The State Budget Bill 2021 is designed to boost economic recovery across the country amid the COVID-19 pandemic,” Widodo said in his annual budget address to parliament before the country’s independence celebrations on August 17.

($1 – 14765,0000 rupees)

Reporting through Gayatri Suroyo, Fransiska Nangoy, Tabita Diela and Maikel Jefriando; Edited through Ed Davies

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