The Indonesian government has formally accepted an economic growth target of 5.1% for 2017 in anticipation of cuts in government spending next year.
Behind the lower growth target is uncertainty in global markets as well as the problem the Indonesian government faces in securing tax revenues at a time when commodity prices are low.
The Minister of Finance, Sri Mulyani Indrawati, said government spending this year will be below target which will impact growth prospects and that further cuts are likely next year.
Source: ITTO
