TEMPO Interactive, Jakarta: The Fiscal Policy at the Finance Department said indonesia's current debt ratio has reached a save level for the government to consider expansive fiscal policies to finance infrastructure projects, and suggested the government to provide stimulus to boost economic growth infrastructures.
Speaking at a seminar on next year's property business outlook in Jakarta on Tuesday, head of the Fiscal Policy Anggito Abimanyu said the debt to Gross Domestic Brutto has decreased to 30 percent, “This is a save ratio for expansion.”
Anggito said in the past ten years debt to GDP ratio has down from almost 90 percent in 2000.
Anggito said the government should take into consideration the fact that since 2006 increase in infrastructure spendings have signifcantly reduce the unemployment rate. “From 2000 to 2005, the state budget only allocate a total of Rp100 trillion for infrastructure.” between the time frame the fiscal policy head said unemployment rose from around 6 percent to more than 11 percent.
The situation reversed in 2006 after the government increased infrastructure budget to an average of around 16 percent a year, which brought the employement rate down gradually from 11.2 percent in 2005 to 8.1 percent.
Next year the government will allocate 21 percent of the total national budget for infrastructure, consisting of 10 percent for construction, seven percent for transport, and three percent for real estate.