Jakarta — Indonesian President Susilo Bambang Yudhoyono gave his annual state-of-the-nation address at parliament in Jakarta Friday, saying that the government expects the country’s economy to expand by 6.4 percent next year with a lower budget deficit and subsidy.
In his annual state of the nation address as well as his budget speech, both given Friday, the head of the world’s third-largest democracy pointed to the country’s progress since he took first took office in 2004 after years of economic turmoil and terrorism that followed the downfall of longtime ruler Suharto in 1998.
“We have attained a lot,” Mr. Yudhoyono said in a 55-minute speech in front of law makers and foreign diplomats, which traditionally comes every year the day before Independence Day.
“The fall in the number of people living in poverty as well as the level of unemployment are proof of the success of our development program…Indonesia is now a middle-income country.”
President Yudhoyono said that the country’s budget deficit was expected to account for 1.49 percent of GDP next year, lower than this year’s expectation of 2.38 percent according to Global Times report.
Indonesia, an oil net-importer with huge oil subsidy, raised subsidized-fuel prices on May 22, which is expected to reduce oil consumption and importation report said.
The southeast Asia‘s largest economy’s budget next year will stand at 1,662.5 trillion rupiah (159.98 billion US dollar), or 10.7 percent higher than that of 2013, Yudhoyono said.