Govt to reduce unemployment rate by 0.5 percent

Jakarta (ANTARA News) - The government has set itself the target of reducing the unemployment rate by 0.5 percent from 7.5 percent in 2010 to 7 percent this year.

President Susilo Bambang Yudhoyono made the statement when giving the targets of national development in the 2011 government plan of action before all cabinet ministers, governors, district heads, and mayors at a working meeting here on Monday.

Besides reducing the unemployment rate, President Yudhoyono said the government would also reduce the poverty rate from 13 percent to about 12.5 or 11.5 percent this year.

"That is our target, to achieve it we should certainly have financial resources in our state budget," the president said.

In connection with financial resources, the head of state said 2011 state budget rose by 9.2 percent from the last year`s budget to Rp1,229.6 trillion this year.

But the president added that the rise of state budget was balanced by an increase in state revenue.

"Our state revenue rises 11.3 percent from that in the previous year and it can reduce budget deficit," the president said.

Meanwhile, Finance Minister Agus Martowardojo said early this year that budget deficit in 2010 state budget reached only Rp39.5 trillion or 0.62 percent from previous estimation of Rp133 trillion or 2.1 percent.

He also said the remaining budget financing (SILPA 2010) was Rp47 trillion and corrected a prediction of Rp23.2 trillion that he made a week ago.(*)