Indonesia finmin proposes 2021 budget deficit at 3.21%-4.17% of GDP

JAKARTA, May 12 (Reuters) – Indonesia’s finance minister on Tuesday proposed to parliament a budget deficit of 3.21%-4.17% of gross domestic product for 2021, with the aim of supporting economic recovery after the coronavirus pandemic is over.

Sri Mulyani Indrawati also proposed basing that budget on the assumptions that the yield of the benchmark 10-year bond would be within a range of 6.67%-9.56% and the rupiah exchange rate would average at 14,900-15,300 a dollar next year.

Indonesia’s 2021 economic growth is assumed at 4.5%-5.5%, with inflation rate at 2%-4%, Indrawati said, matching figures she has announced last month.

The country’s oil lifting in 2021 is expected at 677,000-737,000 barrels per day, while gas lifting is seen at 1.085 million-1.173 million barrels of oil equivalent per day, Indrawati said. (Reporting by Tabita Diela; writing by Gayatri Suroyo; Editing by Andrew Heavens)

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