Balance of payment control needed to meet global pressure: Minister

Balance of payment control needed to meet global pressure: Minister

Finance Minister Sri Mulyani. (ANTARA /Hafidz Mubarak A)

Jakarta (ANTARA News) - Finance Minister Sri Mulyani stated here on Wednesday that the balance of payment had to be controlled to prevent disruption in economic activities originating from the global situation.

"We must do it consistently, so that our economic growth will not be disrupted massively in the midst of the current inconducive global economic condition," she stated.

Efforts to improve the balance of payment, including the current account and balance of trade, must be started by reviewing government infrastructure projects, she noted.

The review, aimed at reducing the imports of raw materials or substitute materials, must be conducted by considering the strategic values or employment-creating potentials of the projects.

"We will review all imported components of the government projects and replace them with domestically produced items. We will reschedule projects that have smaller impact on growth," she added.

Other efforts to be taken to reduce deficit is by reducing the imports of 500 commodities in the trade and industrial sectors that could be produced at home, she noted.

On a separate occasion, Head of Fiscal Policy Suahasil Nazara referred to the import of turbine for power generation that could be used as an example.

"We will scrutinize them thoroughly especially regarding the government`s projects to see which of them are not urgently needed. He referred as an example a power project in Java. It need not be finished now, as supply is still sufficient in the region. It may be postponed to reduce import pressure," he noted.

He said other steps to be taken, particularly in the oil and gas sector, is implementing the use of the 20-percent biodiesel blending (B20).

He said efforts were also necessary to boost exports to improve the current account deficit to new markets and encourage LPEI, the export financing institute, to support export financing.

Reported by Satyagraha
Edited by Yoseph Haryadi, Sri Haryati