European Joint Luncheon Meeting with Mrs Sri Mulyani: Indonesia economic condition remains strong and solid after the presidential election.
Mrs. Sri Mulyani, The Interim Coordinating Minister for Economic Affairs and Minister of Finance said that Indonesia economic condition remain strong in 2009 and easier in 2010 after the presidential election. The economic and monetary reform will continue and the government had done both fiscal and monetary policies to cover economic turbulent during global financial crisis. Fiscal policy stimulus includes; provide stimulus to company in form of tax incentive (lower tax rate, minimum threshold, tax on employee), expand infrastructure, and continue bureaucracy reform on Ministry of Finance, tax, custom, budget and treasury, and for the monetary stimulus the government had lower interest rate. Bureaucracy reform policy and decline tax rate is two major things that the government already done and it will continue after the presidential election.
Indonesia’s resilience to global crisis is better than other countries. Many business markets are still potential for investors. Business sector for agriculture keep stable, transportation and communication sector increase to 16,7 % from total GDP on 2009, despite the decrease of manufacture and trade and suffered from the export decline causing lower exports contribution. However this is can be explained that financial crisis hit most countries in the world. The Indonesian economic growth expectedly to reach 4-4,5 % in 2009, and after the consolidation time in 2010, optimistically, the Indonesian economic growth will accelerate supported by increasing of trading activities.
Mrs. Sri Mulyani, The Interim Coordinating Minister for Economic Affairs and Minister of Finance said that Indonesia economic condition remain strong in 2009 and easier in 2010 after the presidential election. The economic and monetary reform will continue and the government had done both fiscal and monetary policies to cover economic turbulent during global financial crisis. Fiscal policy stimulus includes; provide stimulus to company in form of tax incentive (lower tax rate, minimum threshold, tax on employee), expand infrastructure, and continue bureaucracy reform on Ministry of Finance, tax, custom, budget and treasury, and for the monetary stimulus the government had lower interest rate. Bureaucracy reform policy and decline tax rate is two major things that the government already done and it will continue after the presidential election.
Indonesia’s resilience to global crisis is better than other countries. Many business markets are still potential for investors. Business sector for agriculture keep stable, transportation and communication sector increase to 16,7 % from total GDP on 2009, despite the decrease of manufacture and trade and suffered from the export decline causing lower exports contribution. However this is can be explained that financial crisis hit most countries in the world. The Indonesian economic growth expectedly to reach 4-4,5 % in 2009, and after the consolidation time in 2010, optimistically, the Indonesian economic growth will accelerate supported by increasing of trading activities.
In the sideline of her speech, she offends her nomination to be the Governor of Bank Indonesia. It is confirmed by the state secretary that she will be nominated as the Governor of Bank Indonesia replacing Boediono who resigned to partner with the incumbent, Susilo Bambang Yudhoyono in his re-election bid. Amid the controversy of her nomination, she convinced that the reform will continue whoever will chair the Department of Finance. It is concerned that if two prominent reformist of the Department of finance moved to the Bank Indonesia, the institution reform in its department will halted. Darmin nasution, her partner for finance department reform has already moved to Bank Indonesia to replace Miranda Goeltom, the current BI senior deputy governor. Darmin is set to take office next month after Miranda’s term expires.
