Estimate of current account deficit revised upward<\/p>\n
JAKARTA (JP): The Indonesian government has revised its
\nprediction of the current account deficit for the current
\n(1996\/1997) fiscal year upward to US$8.7 billion from an earlier
\nestimate of $6.9 billion.<\/p>\n
\"After making new calculations, we must revise our estimate of
\nthe 1996\/1997 current account deficit,\" Coordinating Minister for
\nEconomy and Finance Saleh Afiff told newsmen here yesterday after
\na meeting with President Soeharto.<\/p>\n
Afiff added that the earlier estimate of the 1996\/1997 current
\naccount deficit assumed too low a rise in imports but too high an
\nincrease in exports.<\/p>\n
The government previously predicted that during the current
\nfiscal year exports would grow by 19.5 percent and imports by
\nonly 11 percent.<\/p>\n
Previously, the government thought the current account deficit
\n(the balance of merchandise trade and service transactions) would
\ndecline to $6.9 billion in 1996\/1997.<\/p>\n
However, the actual current account deficit last fiscal year
\nwas only about $7 billion, much lower than the $7.9 billion
\noriginally estimated.<\/p>\n
Afiff also noted that the economic overheating is continuing
\nand the inflation rate cannot be kept within the target of five
\npercent.<\/p>\n
President Soeharto, according to Afiff, called for more
\nconcerted efforts to bolster exports and reaffirmed that
\ncontinuing the current prudent fiscal and monetary policies was
\nimperative.<\/p>\n
Deregulation<\/p>\n
\"We're preparing a new deregulation package, scheduled to be
\nlaunched next month, and we hope it will further boost our
\nexports,\" he said.<\/p>\n
The President, he added, also ordered that foreign debt
\nrepayments be accelerated to reduce the debt service burden.<\/p>\n
Afiff noted that the proceeds from the forthcoming
\nprivatization of several more state enterprises would be used to
\npay foreign debts off early, particularly those bearing high
\ninterest rates.<\/p>\n
Currently, Indonesia's foreign debts are estimated at about
\n$100 billion, with some $63.5 billion of that in public debts.<\/p>\n
Saleh said that the government expects the Consultative Group
\non Indonesia (CGI) -- the country's creditor consortium -- which
\nwill hold its annual meeting in Paris on June 18-20, to pledge
\nnew loans at least equivalent to the $5,36 billion they committed
\nlast year.<\/p>\n
Afiff added that the government would strictly maintain the
\nceilings on new offshore commercial borrowings by state companies
\nand for government projects.<\/p>\n
For the current 1996\/1997 fiscal year, the ceiling on
\ncommercial borrowings for government projects was set at $800
\nmillion, for those by state banks at $500 million, while export
\ncredits were set at $1 billion. (13\/vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/estimate-of-current-account-deficit-revised-upward-1447893297",
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