Ministers review projects rescheduling<\/p>\n
JAKARTA (JP): Economic ministers met for several hours at the
\nfinance ministry yesterday to review investment projects that
\ncould be rescheduled in anticipation of lower revenues due to the
\ncurrency turmoil.<\/p>\n
But the meeting, which followed a reform package announced
\nWednesday to cope with the impact of the currency crisis, did not
\nmake a final decision on specific budget cuts.<\/p>\n
"We took stock of projects according to their scale of
\npriority. Obviously, high priority programs will not be axed,"
\nCoordinating Minister for Economy and Finance Saleh Afiff told
\nreporters after the meeting.<\/p>\n
Afiff, like other ministers, refused to answer questions on
\nwhich investment projects would be postponed.<\/p>\n
"We have yet to report the results of our meeting to the
\nPresident," Minister\/State Secretary Moerdiono said.<\/p>\n
Budget retrenchment was one of the measures adopted at the
\nmonthly cabinet meeting Wednesday to cope with the impact of the
\ncurrency turmoil and address the economic pains inflicted by the
\ntight monetary policy over the last three weeks.<\/p>\n
The other moves include a gradual easing of the tight monetary
\npolicy, restructuring of the banking industry, liberalizing
\nforeign purchases of shares on the domestic exchanges and raising
\nthe luxury sales tax on several goods.<\/p>\n
Yesterday's meeting was also attended by Finance Minister
\nMar'ie Muhammad, State Minister for National Development Planning
\nGinandjar Kartasasmita, Bank Indonesia's Governor Soedradjad
\nDjiwandono, Minister of Industry and Trade Tunky Ariwibowo and
\ngovernment economic advisors Widjojo Nitisastro and Ali Wardhana.<\/p>\n
Asked whether the national car program (sponsored by PT Timor
\nPutra Nasional) would be one of the projects to be rescheduled,
\nAfiff said the term "national" classifies it as a high priority
\nproject.<\/p>\n
"Power plant projects are among the top priority," he added.<\/p>\n
Ginandjar said no decision had been made on which projects
\nwould be rescheduled because the finance ministry and other
\nmembers of the Monetary Council had yet to review revenue targets
\nfor the 1997\/1998 fiscal year.<\/p>\n
"But as I have often explained, the budget retrenchment should
\nbe done in such a way so as not to undermine the long-term
\nfoundation of our economy and affect poverty alleviation and
\nhuman resource development programs," Ginandjar added.<\/p>\n
He said projects which would likely be axed were ones financed
\nby rupiah funds, which required imported goods and services.<\/p>\n
"We should not aim for robust growth as in the past few years
\nbecause the rupiah's sharp depreciation will surely affect our
\nrevenue," Ginandjar said.<\/p>\n
The government would do its best to sustain economic growth at
\n7.1 percent as targeted for the current Sixth Five Year
\nDevelopment Plan. (icn\/vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ministers-review-projects-rescheduling-1447893297",
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"sponsor": "Okusi Associates",
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