"We will provide stimulus to prevent the economy from slowing down to the extent that international institutes have predicted," she said here on Wednesday night.
Anny said the government is considering further revising the country`s economic growth to 6.5 per cent from 6.7 per cent in the 2012 state budget, in view of global economic uncertainties and the increase in Indonesian crude oil price (ICP) averaging US$115 a barrel.
The lingering European crisis has led to a decline in the world`s purchasing power and eventually reduced exports, one of the factors contributing to economic growth, she said.
"We have always been convinced that our exports can be increased. But it is difficult to survive if commodity prices continue to fall," she said.
To boost domestic consumption in anticipation of export shortfall, the government will increase capital spending to improve infrastructure facilities under the revised 2012 state budget, she added.
"We hope the revised state budget, which allows the reallocation of budget funds to the infrastructure sector, will maintain the people`s purchasing power so the capital inflow will go to the real sector and not to the investment portfolio and we can minimize the risk of capital outflows," Anny said.
The skyrocketing ICP has prompted the government to raise the budget deficit to 2.2 per cent in the revised 2012 state budget, she added.
The condition caused difficulties to the government due to the absence of clear management of subsidized gasoline and diesel oil to safeguard the subsidy budget this year, she concluded.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
