Indonesia missed its target for economic growth in 2015 because of a global slowdown, according to the Finance Ministry, which reported initial estimates for a larger-than-expected budget deficit and an undershoot on inflation for the year.
The economy expanded 4.73 percent from a year earlier, missing the 5.7 percent target set in the state budget, the ministry said in statement on Sunday. Inflation was 3.1 percent last year, lower than the 5 percent goal, the ministry said.
President Joko Widodo is seeking to spur growth in Southeast Asia’s largest economy by cutting red tape and increasing infrastructure spending at a time when tax and commodity-export revenues are falling short of projections. The government has introduced seven stimulus packages since September to increase spending and boost investment to support the expansion.
The budget deficit may have totaled 2.8 percent of gross domestic product in 2015, above the 1.9 percent target, the ministry said. The government spent 1,810 trillion rupiah ($130.9 billion) from the state budget last year, while revenue was 1,491.5 trillion rupiah, it said.
Tax revenue was 1,235.8 trillion rupiah last year, or 83 percent of the amount the government was aiming for, as a weakening economy cut income from the mining and processing sectors, the ministry said.
The rupiah averaged 13,392 against the dollar in 2015, while the country’s crude fetched about $50 per barrel, below the $60 target, the ministry said. Crude-oil sales seen were 779,000 barrels a day, below the objective of 825,000 barrels a day, it said.