Indonesian government will focus on infrastructure development to keep and maintain economic growth set out in the Proposed Budget 2012-P of 6.5 percent from the threat of global economic slowdown.
As the conditions now through out the whole world, the global economic threat was spreading even to big or super power countries, all the countries in the world (including the big countries such as USA, China and the European Union) is preparing and to composed as well as revamped their economic structure which also include in infrastructure.
Refering to this threat, Indonesia is preparing and doing its task to counter the threats, “If we focus on the estimate acceleration, improving infrastructure, and implement MP3EI, we expect to achieve 6.5 per cent,” said Finance Minister Agus Martowardojo in-P Proposed Budget discussion meeting with the House of Legislative of Indonesia Budget Agency in Jakarta, Wednesday night (03/07)
To this end, the government’s Proposed Budget-P added to the capital budget of Rp.168,9 trillion or an increase of 11.1 percent, higher than the GDP of PAGU Rp.151,9 trillion. Finance Minister revealed increased expenditure was due to the policy for these programs in the areas of infrastructure funding comes from the use of its budget balance (SAL) until 2011 a total of Rp.20,2 trillion.
Infrastructure development in question is the development of eastern Indonesia connectivity, provide connectivity infastruktur domestic support, and the economic corridors, as well as food security, disaster mitigation, clusters, and the purchase of equipment for The Police in anticipation of riot.
Also, said Finance Minister, changes in the capital budget as well as because of the capital spending cuts at BA 999.08 of Rp.3,9 trillion, budget reallocation of other expenses post to some of the organization as a unit working with the estimate itself. Then, there is very urgent supplementary budget proposed to be accommodated, the Ministry of spending cuts worth Rp.18,9 trillion over the activities can not continue the program or activity which is not a national priority.
“Changes in capital expenditure also occurs because of the additional budget for education for primary and secondary recovery,” said The Minister. Government in the Proposed Budget-P also changed the official budget was reduced by 1.7 percent, or a Rp.215,8 trillion from the previous state budget PAGU of Rp.212,24 trillion.
Budget items also experienced a decline from Rp.188 trillion to Rp.186,5 or 0.8 per cent because of the cost reduction policy from the Ministry of Rp.16,1 trillion. “Cutting performed on all ministry Board as part of the savings and estimates are based on the absorption performance for three years,” said Finance Minister.
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