Govt prepares mitigation policies to address economic slowdown

Govt prepares mitigation policies to address economic slowdown

Finance Minister Chatib Basri. (ANTARA FOTO/Widodo S. Jusuf)

Under the medium-and long-term policies, the government would always try to improve the country`s current account deficit by boosting exports, managing imports and improving investment climate.
Jakarta (ANTARA News) - The Indonesian government is preparing a number of short-and medium-term mitigation policies to address economic slowdown and market volatility as a result of global uncertainty, Finance Minister Chatib Basri said.

The short-term policies to mitigate the global economic uncertainty included encouraging the realization of foreign currency-denominated financing sources by issuing state debt securities (SUN) and increasing state banks` participation in maintaining liquidity, he said here on Tuesday.

The other policy was that the government had given a positive signal by expanding the fiscal room in the draft 2012 state budget for public transportation, infrastructure and social insurance as well as by strengthening coordination to maintain the stability of financial system, he said.

"The government is also trying to activate bond stabilization framework by among others stepping up coordination with the state enterprises ministry and relevant state enterprises," he said.

Under the medium-and long-term policies, the government would always try to improve the country`s current account deficit by boosting exports, managing imports and improving investment climate, he said.

"The efforts include granting fiscal instrument through the revision of tax allowances by simplifying procedures and tax holiday by expanding sectors, relaxing the period of time and lowering the minimum amount of investment," he said.

The other medium-and long-term policies included the application of macro-prudential policies to reduce market volatility and the national economy`s vulnerability to external upheavals, he said.

He said the other mitigation policies were making an optimum use of budget and accelerating the disbursement of budget funds.

The policies were taken to ensure that the national economy would grow by above 6 percent, he said.(*)

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