2Q18’s Lagging ULN
The 2Q18’s foreign debt (ULN) grew by 5.5% lagging than the 1Q18’s ULN of 8.9% y-y and settled stably at the ratio of debt to GDP at the average of 34%. The total ULN reached USD355.7 billion consisting of the government debt and Bank Indonesia’s (BI) debt of USD179.7 billion, as well as the private debt of USD176 billion. The lagging ULN growth aligned with the accountable fiscal management buffering such global pressures as the strengthening USD and the trade war tension between the U.S. and a number of countries.

2019’s State Budget Draft: Focus on Improvement of SDM Quality
Based on the disclosure of the 2019’s state budget draft (RAPBN), the government will focus on improving the quality of human resources (SDM) and the social assistance program. The Indonesia Smart Card (KIP), Education Operational Assistance (BOS), vocational and undergraduate scholarship are programs for improving SDM. Meanwhile, the national health insurance (JKN), the Family Home Program (PKH), the meal allowance, and the microcredit program are some of the social assistance programs. Additionally, the government is committed to maintaining the welfare of civil servants — officers and retirees — by providing the 13th month salary and the Idul Fitri bonus, the hike of 5% in principal salaries and pension funds, and the hike of 25% in veteran allowance.

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