Government to Raise Expenditures in Order to Create Work Opportunities
Monday, 18 September, 2006 | 12:28 WIB

Tempo Interactive, Singapore: The government will raise state expenditures up until the end of this year especially for sectors that are capable of creating work opportunities and reducing poverty.

The government, according to Finance Minister Sri Mulyani Indrawati, will increase expenditures by above 50 percent of the government’s total expenditures of Rp689.8 trillion this year.

“Expenditures are aimed at sectors that can create job opportunities and reduce poverty,” Sri Mulyani said on Saturday (16/9) last week in Singapore.

She said she recognized that it was high time for the government to relax fiscal policies as of last year.

Therefore, a stimulus is needed so that people's purchasing power may be increased following the increase in fuel prices on October 1 last year.

However, the government is trying to ensure that such a stimulus as increasing government expenditures will not produce surprises as regards economic indicators.

Therefore, expenditures must be made in an accurate, cautious and harmonious manner.

The government will also cooperate with Bank Indonesia (BI) for relaxing monetary policies.

“Coordination has already been carried out,” she said.

BI is starting a gradual relaxation by decreasing its interest rate.

“There is room for continuously decreasing the interest rate,” said Sri Mulyani.

Yura Syahrul
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