Indonesia President Widodo proposes 2022 budget of 2,708.7 trillion rupiah, USD/IDR eases below $14,400

Indonesia President Joko Widod crosses wires during early Monday, via Reuters, while announcing a budget proposal for 2022 as the Asian nation battles the coronavirus pandemic.

Key quotes

Global uncertainty is high in 2022.

Challenges government must face include climate change, rising geopolitical dynamics, uneven economic recovery

2022 state budget will focus on economic recovery, structural reforms

Proposes 2022 budget to parliament with GDP growth assumed at a range of 5.0%-5.5%

Budget proposal assumes 2022 inflation of 3% y/y.

Budget proposal assumes 2022 avg. rupiah exchange rate of 14,350/$

Indonesia 10-yr bond yields assumed averaging at 6.82% in 2022.

Indonesia 2022 budget proposal assumes crude oil price at $63/barrel

Indonesia 2022 oil lifting target set at 703,000 bpd.

Indonesia 2022 natural gas lifting target set at 1.036 million boepd.

2022 budget will be foundation of reducing fiscal deficit to under 3% of GDP in 2023.

2022 budget will also focus on efforts to control covid-19 outbreak.

Indonesia's health spending proposed at 255.3 trillion rupiah in 2022.

Indonesia's 2022 social protection spending proposed at 427.5 trillion rupiah.

Indonesia targets state revenue of 1,840.7 trillion rupiah for 2022 budget.

USD/IDR eases from intraday high

Following the news, USD/IDR steps back from an intraday peak of $14,395 to $14,378 while printing 0.10% daily gains. It’s worth noting that the cross-currency pair rises for the second consecutive day by the press time.