"The government is of the view that the target is higher than what many international agencies have predicted at 6.5 percent," he said when delivering the government`s reply to the House of Representatives factions` general views on the bill on 2012 state budget here on Wednesday.
He said the government was optimistic that the domestic economy in 2012 would perform better than in the previous years.
Yet, in setting various macro economic targets including economic growth target the government had always tried to be realistic by observing latest developments in the indicators of global and domestic economic performance in 2012, he said.
"The economic growth forecast of 6.7 percent is quite realistic. Not only do we hope the economy to continue to pick up but also try to improve the quality of economic growth to create more jobs," he said.
The government was also planning to take advantage of capital spending in 2012 more effectively to support the development of basic facilities and infrastructures which had greater economic function to spur economic growth, he said.
He said budget allocations for capital spending next tear would among others focus on developing basic facilities and infrastructures for the benefit of the people`s living standard.
"In addition, the budget allocations for capital spending will be used to improve agricultural infrastructures in support of food security as well as to develop energy and communication infrastructures," he said.
Under the draft 2012 state budget, budget allocations for infrastructure development is expected to reach Rp156.5 trillion. Of the total, Rp30.5 trillion will be used to build roads, Rp12.4 trillion to develop resettlement, Rp16.3 trillion to finance water resource management programs, Rp6.9 trillion to promote sea transportation and Rp8.8 trillion to develop railway system.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2011
