No project rescheduling so far, say ministers<\/p>\n
JAKARTA (JP): The government has not made any decision
\nregarding the rescheduling of development projects despite
\nPresident Soeharto's call last week to do so.<\/p>\n
Coordinating Minister for Economy and Finance Saleh Afiff said
\nhere yesterday the government did not see the need to reschedule
\nthe projects because such measures would slow the country's
\ndevelopment.<\/p>\n
Minister\/State Secretary Moerdiono echoed Afiff's statement,
\nsaying there was no need to postpone ongoing projects.<\/p>\n
\"So far we have not decided on rescheduling any of the
\nprojects,\" Moerdiono said after a ministerial meeting to discuss
\nthe currency situation.<\/p>\n
Moerdiono, Afiff, Minister of Finance Mar'ie Muhammad, Bank
\nIndonesia Governor Soedradjad Djiwandono, Minister of Industry
\nand Trade Tunky Ariwibowo and several other officials have been
\nholding a routine meeting since Monday to monitor the rupiah.<\/p>\n
In view of the current currency uncertainties, President
\nSoeharto called on the government and businesses last week to
\nreview their investment projects and determine which should be
\ngiven top priority and which should be postponed.<\/p>\n
The rupiah has dropped by over 25 percent since January. Much
\nof the fall took place in the last few weeks following
\nspeculative attacks from foreign and local managers. The rupiah
\nfell to a record low of over Rp 3,000 last week but it started to
\nrecover after Bank Indonesia sharply raised its interest rates.<\/p>\n
Afiff said the government had established a team to study some
\nof the projects to be rescheduled.<\/p>\n
The team comprised the central bank, the National Development
\nPlanning Board, the finance ministry and the ministry of industry
\nand trade, he told journalists following the meeting.<\/p>\n
He did not say when the team would start working, but said
\nsome of the projects such as the disputed Timor \"national car\"
\nproject would not be rescheduled.<\/p>\n
Meanwhile, Minister Tunky urged businesses yesterday not to
\nhastily raise their prices amid currency uncertainties.<\/p>\n
\"The currency situation is not stable, so I urge them not to
\nraise their prices,\" he said.<\/p>\n
Raising prices would only made it hard for businesses to sell,
\nas the rupiah's liquidity had declined, he said.<\/p>\n
The only way to cope with the crisis, he said, was by
\nincreasing their efficiency.<\/p>\n
\"Companies must make their best efforts to reduce production
\ncosts,\" he said.<\/p>\n
He said the ministry would continue monitoring the price and
\nsupply of production and would encourage more exports. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/no-project-rescheduling-so-far-say-ministers-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}