Indonesia would amend its estimation on state budget and economic growth as the soaring global oil price had passed 100 U.S. dollars per barrel, President Susilo Bambang Yudhoyono said Thursday.
The government and the parliament would discuss this month to find out appropriate predictions for economic growth, oil price, inflation, interest rate and others, the president told a press conference after a cabinet meeting at the finance ministry.
He said the skyrocketing oil price had resulted in the increase of subsidy in oil sector and deficit in the budget.
The president said the subsidies could reach 250 trillion rupiah (27.14 billion U.S. dollars), some 28 percent of the total value of the state budget. "Without adjustment, our subsidies would be very high, it is very unhealthy."
Steps to be taken in the oil sector include the retrenchment on the use of oil and the acceleration of conversion from kerosene togas, Susilo said, stressing that the state budget must serve as a stimulus for the economic growth.
Indonesia, the biggest economy in southeastern Asia, has reduced its economic growth target from 6.8 percent to 6.4 percent this year, inflation from 6.0 percent to 6.5 percent, and rupiah exchange rate against U.S. dollar from 9,100 to 9,150.
The state revenue is revised up from 781.4 trillion rupiah (84.7 billion dollars) to 893 trillion rupiah (96.96 billion dollars ) and the state expenditure from 854.6 trillion rupiah (92.73 billion dollars) to 926 trillion rupiah (100.54 billion dollars).
Source:Xinhua
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