Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>   Indonesia News  >>   Economy  >>   Indonesian deficit down to slow spending
NEWS UPDATES Asean Affairs   9  December 2010

Indonesian deficit down to slow spending

Related Stories

December 3, 2010
Indonesia , China share state enterprise experience

December 1, 2010
Indonesia on track for credit upgrade

November 6, 2010
Fed stimulus rattles Asia

November 1, 2010
Indonesia should shift spending to growth

October 28, 2010
Indonesia wants common Asean currency

October 7, 2010
Indonesia to sell 60 percent of oil stocks

The government has trimmed its budget deficit target for this year from 2.1 percent to below 1.5 percent of gross domestic product, to reflect sluggish state spending, Finance Minister Agus Martowardojo has said.

"We estimated earlier in our first semester report that the deficit would be 2.1 percent this year. However, I think the deficit this year might be below that," Agus said on Wednesday, adding that the original target was equal to Rp 133 trillion ($15 billion).

He did not disclose the nominal value of the revised budget shortfall.

Government spending has been sluggish, with regional officials reluctant to spend funds allocated by the central government for fear of being implicated in corruption cases.

As of November, the government had spent only 72.6 percent, or Rp 817 trillion, of its budget, short of this year's expenditure target of Rp 1,126 trillion.

State revenue was expected to reach Rp 992.4 trillion. The Finance Ministry said in September that it wanted to limit the deficit to 1.7 percent of GDP to maintain a healthy fiscal position as part of efforts to achieve a good investment grade credit rating.

Credit rating agency Moody's this month placed Indonesia on review for another possible upgrade after raising its credit rating outlook to positive in June, citing economic resilience and a prudent policy framework.

Analysts have warned, however, that a lower-than-expected budget deficit could hurt the economy in the long run, since it might hamper plans to improve the country's infrastructure.

"The finance minister should not think like a corporation, where lower deficits mean smaller losses," said Tony A. Prasetiantono, an economics and public policy expert at Yogyakarta's Gadjah Mada University.

"Sometimes, a deficit means the government wants to boost economic growth in the long term."


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below
Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com