Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono said that the 2011 state budget was still under great subsidy pressures.

In his directives before regional government heads in a working meeting at the Jakarta Convention Center here on Monday the president said that the absorption of the state budget was also not yet maximal so that growth could not yet be boosted optimally.

The state budget problem was one of several challenges that the government had to face in 2011, the head of state said.

"Ahead, subsidy must be directed to the right target. Groups of economically able people should not enjoy subsidy that reduces our expenditure," he said.

The head of state also said that inflation, increase in world food and energy prices would still constitute a main problem in 2011 which, if solutions to it was not found, would have impact on poverty and unemployment.

The government still has to focus on infrastructure and electricity for the need of development, the president said.

Besides, license matters and legal certainties are also a problem facing investment throughout Indonesia.

"Therefore, I call on all regional governments, regional legislative assemblies and all parties, to help uphold the law," he added.

He said that any wrong doings in the taxation sector should be corrected as it would reduce state revenues. "Let`s assure that state revenues will be received fully, including those from taxes," the head of state said.

The president on the occasion also touched on the problem of the environment that should be improved, promising he would inspect directly damaged environment in the regions.

He also said political phenomenon in 2011 also was seen to be developing to the extent which if left uncontrolled would destroy the principle of the democracy that Indonesia was developing."This is the death bell for democracy," he said.(*)

Editor: Heru Purwanto
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