Indonesias Economy Projected to grow Six Percent in 2014

Solo, Central Java (Antara) - Indonesia's economy has been projected to grow six percent in fiscal 2014, down from 6.3 percent in the previous fiscal year, an official dealing with budget planning has said. Agung Widiadi, the head of the sub-directorate of budget planning of the Directorate of Budget Planning, said at a group discussion here on Friday that the lower estimate was set keeping in mind sluggish global economic growth. He said the growth estimate assumes inflation at 5.5 percent; the three-month rate of treasury bonds at 5.5 percent; and the rupiah at 10.5 thousand against the US dollar. The projection also assumes the Indonesian crude oil price at US$105 per barrel, Indonesian oil output of 870 thousand barrels per day and gas output equivalent to 1.24 million barrels of oil a day. He said the unemployment rate in 2014 is forecast at 5.7 to 5.9 percent, lower than the 5.8 to 6.1 percent seen in 2013, while the poverty rate is estimated at 9.0 to 10.5 percent, compared with 9.5 to 10.5 percent in 2013. On the issue of taxation policy for 2014, Agung said the drive to intensify sector-based revenues would focus on mining, plantations, property and trade. The system of tax administration and regulations will also be improved to enhance tax payer compliance, while ensuring legal certainty and fair treatment, he added. Widening the tax base to include personal tax payers with high- and medium-level earnings, optimizing data under the national tax census and increasing law enforcement measures against tax evasion will also be on the agenda, he said. Agung noted that efforts are also being taken in anticipation of the planned extension of the concessionary tariff of zero percent on raw materials imports under foreign trade agreements. Measures will also be taken to impose excise duty on a larger number of goods, adjust cigarette excise duty and impose export duty to support downstream industrialization.(*) Reporting by Joko Widodo (H-YH/INE/A. Abdussalam)