"We are currently finalizing the package. The public will be informed of its release on Friday," Finance Minister Chatib Basri said.
Jakarta (ANTARA News) - Finance Minister Chatib Basri said the government was preparing a package of economic policies for release on Friday in response to new economic developments.

"We are currently finalizing the package. The public will be informed of its release on Friday. The policies have been bound together in a package because they are interdependent since we are presently facing an unusual set of circumstances," he stated here on Wednesday.

Chatib noted that national economic conditions, which are now in a state of flux due to the depreciation of the rupiah and the drop in the share price index, could be overcome by curbing the current account deficit. This can be achieved now that oil imports and fuel consumption have started to drop.

"Oil imports in the second quarter dropped to 10.8 percent in the current account. Fuel consumption in July grew 4 percent, where it is typically 6 to 7 percent, so we are hopeful that the current account deficit will decrease," he said.

In view of this strategy, he explained that the government must ensure that the current account deficit in the third quarter is significantly smaller by implementing a package of policies to overcome upheavals and stave off an economic slowdown.

He noted that measures must be adopted to address any additional slowdown in the economy.

He pointed out that this could be done by avoiding layoffs and supporting the "keep buying strategy" to ensure that consumption contributing to growth does not weaken.

"In the short term, we must focus on the stability of the financial system without sacrificing economic growth. Bank Indonesia and the finance ministry have discussed efforts to safeguard it and to formulate a comprehensive package," he said.

Chatib remarked that the government plans to prevent layoffs because a growth assumption of 6.3 percent will be difficult to achieve and would make absorption of the unemployed more challenging.

He said the decision to produce a package of policies was the best solution for market players who were worried about the current situation even though economic fundamentals are still well placed.

"We must apply preventive measures. Things are under control for now, but we must be on guard. We aim to maintain economic stability and sustain growth," he asserted.(*)

Editor: Heru Purwanto
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