Poverty, unemployment will be govt's main focus in 2006<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
Reducing the country's poverty and open unemployment rate will be
\nthe government's main focus in its development priorities for
\n2006.<\/p>\n
In its 2006 Government Action Plan (RKP) draft, the government
\naims to reduce poverty to 32.4 million people, or 13.3 percent of
\nthe country's 220 million population.<\/p>\n
The Central Statistics Agency (BPS) reported that Indonesia's
\npoverty rate as of 2004 stood at 16.4 percent of the population,
\nor 36.1 million people.<\/p>\n
\"We will also reduce the country's open unemployment rate to
\n9.6 million people, or 8.9 percent of the 103.9 million
\nworkforce,\" State Minister of National Development Planning Sri
\nMulyani Indrawati said on Wednesday during the opening of a
\nthree-day National Development Planning Plenary Meeting.<\/p>\n
Data from BPS shows that open unemployment reached 9.9 percent
\nof the workforce, or some 10.3 million people, in 2004.<\/p>\n
Apart from the reduction in poverty and unemployment, the
\ngovernment plans to also provide better access to education and
\nhealth services, revive agricultural and rural development,
\nimprove law enforcement and corruption eradication efforts,
\nimprove security and conflict resolution, and reconstruct
\ntsunami-devastated Nanggroe Aceh Darussalam and parts of North
\nSumatra.<\/p>\n
\"The government will improve its ability to provide the most
\nbasic needs for the poor and ensure that the fuel subsidy
\ncompensation program indeed reaches them,\" Mulyani said.<\/p>\n
The government raised domestic fuel prices by an average of 29
\npercent on March 1 to slash the burgeoning fuel subsidies. In
\nreturn, it has prepared a Rp 17.8 trillion fund for the poor to
\nhelp ease the burden of those affected by the price hike.<\/p>\n
Mulyani said to improve the country's open unemployment rate,
\nthe government would boost economic growth, particularly by
\nincreasing exports and investment into the country.<\/p>\n
\"We plan to increase exports by 5 percent and investment by
\n1.2 percent next year,\" she said. \"This increase in economic
\nactivity will hopefully help absorb the country's increasing
\nworkforce.\"<\/p>\n
According to BPS, Indonesia's exports reached US$75 million in
\n2004, while foreign direct investment reached $10.27 million.<\/p>\n
At the same occasion, Minister of Finance Yusuf Anwar said the
\ngovernment has forecast an economic growth of 6.1 percent next
\nyear, following an estimated 5.5 percent growth this year.<\/p>\n
With some 2.5 million new workers entering the job market each
\nyear, Indonesia's economy needs to expand by at least 6 percent
\nto be able to absorb them.<\/p>\n
Despite its ability to achieve an average 5 percent growth
\nrate over the past three years, Indonesia's economic engine has
\nprimarily been domestic consumption, with exports and investment
\nstill lagging behind.<\/p>",
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"sponsor": "Okusi Associates",
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