Government to spend $1.82b for infrastructure projects<\/p>\n
The government will spend Rp 18 trillion (about US$1.82 billion)
\nnext year for a range of infrastructure projects including
\nirrigation, roads, dams and bridges, to help drive higher
\neconomic growth and reduce employment.<\/p>\n
The expenditure would exclude funds required for toll road
\nprojects and telecommunications infrastructure, which could be
\nsufficiently provided by the private sector, Minister of Public
\nWorks Djoko Kirmanto said on Monday.<\/p>\n
"The funds, which would all be taken from the state budget,
\nwill be allocated for infrastructure projects throughout the
\ncountry," said Djoko after meeting President Susilo Bambang
\nYudhoyono.<\/p>\n
This year, the government has allocated Rp 12.78 trillion for
\ninfrastructure projects, excluding those for reconstruction works
\nin tsunami-stricken Nangroe Aceh Darussalam and parts of North
\nSumatra.<\/p>\n
Next year's planned expenditure would also exclude such
\nprojects.<\/p>\n
Most of this year's funds, however, have not yet been realized
\ninto projects, partly because of the implementation of a new
\nsystem in filing proposals for projects.<\/p>\n
Recently installed Coordinating Minister for the Economy
\nBoediono has said the government would boost its spending for
\ndevelopment projects to help stimulate the economy, currently
\nfacing a speed bump in the form of high interest rates.<\/p>\n
The government will spend between Rp 10 trillion and Rp 15
\ntrillion of undisbursed state funds from the 2005 budget during
\nnext year's first quarter to help reactivate the real sector.<\/p>\n
The government is counting on the private sector to revive
\ninvestment in the second half of the year, with the central bank
\nstarting to gradually lower its lending rates.<\/p>\n
The government is targeting the economy to grow by 6.2 percent
\nnext year despite weakening purchasing power, high inflation and
\ninterest rates, as well as the relatively unstable rupiah
\nexchange rate against the U.S. dollar.<\/p>\n
The forecast is more optimistic than that of Bank Indonesia,
\nwhich predicts the economy to grow by between 5 percent and 5.7
\npercent next year. -- JP<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-to-spend-182b-for-infrastructure-projects-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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