"The reforms launched in the early days of the government of President Joko Widodo shored up the markets trust in the various economic programs of the government," Nakao said at a press conference here on Tuesday.
Nakao, who is paying his second visit to Indonesia since becoming the ADB president in April 2013, will hold talks with President Joko Widodo, Vice President Jusuf Kalla and other government officials during his stay.
He stated that the reforms launched by the government to divert fuel subsidy, boost tax receipts, accelerate infrastructure development, and improve investment climate may encourage the national economy to grow more sustainably.
"Thanks to additional budget from the diversion of fuel subsidy, the government can allocate more resources to infrastructure that are needed to diversify sources of economic growth. The additional budget may also expand the scope of health programs, and education and social assistance to deal with disparities," he observed.
Nakao added that the ADBs support for Indonesia would be synchronized with the countrys medium-term national development plan, including the focus on providing better infrastructure facilities, achieving food and energy security, and encouraging more inclusive economic growth.
The government has set infrastructure development as a high priority to strengthen maritime connectivity, including building more ports, roads, airports, dams, irrigation networks, and power plants, which will cost it an estimated US$500 billion in the next five years, he noted.
He further pointed out that the ADB also supported the governments plan to diversify financing sources by benefiting from public and private resources, and emphasized on the importance of increasing domestic tax receipts and non-tax revenues by upholding regulations and eliminating obscure rules impeding investment climate.(*)