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Thursday, September 15, 2011

Govt Prepping Stimulus as Hedge Against Global Crisis

Jakarta Globe, September 15, 2011

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The Indonesian government is preparing a draft stimulus package as part of efforts to anticipate the impact of the global crisis that is expected to continue until early 2012, Finance Minister Agus Martowardojo said.

“In response to what is happening in Europe today we have thought of a stimulus package expected to be introduced in the first semester of 2012,” he said at a working meeting with the House of Representatives Commission XI here on Thursday.

The stimulus package would function as a means to anticipate any possible impact of the global crisis on the Indonesian economy as a whole, he said.

“We are of the view if what is happening in Europe is to continue it will most likely affect our trading partners or countries investing in Indonesia,” he said.

Meanwhile, Bambang Brodjonegoro, acting chief of the Finance Ministry’s fiscal policy board, said current global economic conditions had the potential to prove worse than the 2008 financial crisis that engulfed much of the world.

According to him, the current global crisis did not directly affect Indonesia but its trading partners.

“The current crisis may deal a heavier blow compared with 2008, although Indonesia and other emerging countries have better economic conditions than developed nations,” he said.

He said the government was still studying the plan for a stimulus package, and that any further details had yet to be decided.

Antara

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