The government will disburse Rp 25.9 trillion (US$2.7 billion) this month to bolster consumers’ purchasing power, particularly among the poor, as part of an effort to mitigate impact from the global financial crisis.
The fund is part of Rp 290 trillion allocated in this year’s social safety-net budget, which is aimed at funding emergency expenses on daily needs and health care.
“We know exactly which should be prioritized and protected. We are managing all aspects in our economy that could be affected by the crisis,” Yudhoyono said at the state palace Thursday night.
The president said he would prioritize protection for the poor by ensuring they meet their daily needs for foods, health care, education and public services.
Disbursement of government expenditures, which had been sluggish, will be fast forwarded to meet target so as to avoiding liquidity squeeze and propelling development, he said.
The global financial crisis, which started as a massive default in the U.S. collateralized debt market, is far from directly affecting Indonesia’s economy, analysts said. However, it has prompted panic among investors in the capital market.
The Indonesia Stock Exchange (IDX) suspended all trading on Tuesday noon after the composite index tumbled by 21 percent in merely three days. Government bonds also suffered from the negative sentiments, particularly after JP Morgan Chase & Co. advised foreign investors to avoid Indonesian bonds.
Yudhoyono is fully aware of the speculative attack and advised investors to respond rationally as the fundamentals on the country’s economy is in a solid footing, proven by the above-six percent growth in past eight quarters.
“In the last three days I have communicated with national business player so they would not be disoriented. The government and the banking sector will ensure there will be capital in the market so that the real sector will be in a safe footing. Nevertheless, should there be a moderation in economic expansion in 2009, it can be accepted,” Yudhoyono said.
Yudhoyono is scheduling daily briefings with economic ministers, business players and economist and will continue addressing the public on the state of the economy.
Source: thejakartapost.com
The fund is part of Rp 290 trillion allocated in this year’s social safety-net budget, which is aimed at funding emergency expenses on daily needs and health care.
“We know exactly which should be prioritized and protected. We are managing all aspects in our economy that could be affected by the crisis,” Yudhoyono said at the state palace Thursday night.
The president said he would prioritize protection for the poor by ensuring they meet their daily needs for foods, health care, education and public services.
Disbursement of government expenditures, which had been sluggish, will be fast forwarded to meet target so as to avoiding liquidity squeeze and propelling development, he said.
The global financial crisis, which started as a massive default in the U.S. collateralized debt market, is far from directly affecting Indonesia’s economy, analysts said. However, it has prompted panic among investors in the capital market.
The Indonesia Stock Exchange (IDX) suspended all trading on Tuesday noon after the composite index tumbled by 21 percent in merely three days. Government bonds also suffered from the negative sentiments, particularly after JP Morgan Chase & Co. advised foreign investors to avoid Indonesian bonds.
Yudhoyono is fully aware of the speculative attack and advised investors to respond rationally as the fundamentals on the country’s economy is in a solid footing, proven by the above-six percent growth in past eight quarters.
“In the last three days I have communicated with national business player so they would not be disoriented. The government and the banking sector will ensure there will be capital in the market so that the real sector will be in a safe footing. Nevertheless, should there be a moderation in economic expansion in 2009, it can be accepted,” Yudhoyono said.
Yudhoyono is scheduling daily briefings with economic ministers, business players and economist and will continue addressing the public on the state of the economy.
Source: thejakartapost.com
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Allah always see what we do!