Tue, 23 Mar 2010

TEMPO Interactive, Jakarta:The government has made 2011 as the year of economic growth acceleration.

In that year, economic growth is predicted to reach between 6 and 6.3 percent of gross domestic product, an increase compared to the 2010 targetof around 5.5 percent.

The State Minister for National Development Planning, also Chairman of the National Development Planning Agency, Armida Alisjahbana, has said that to reach this target, the government is trying to increase investment by 10 percent from 2010.

Government spending will be increased by around ten percent.

This is higher than this year, but lower than in 2008 because of the 15 percent of fiscal stimuli. The export figure is also expected to make a contribution.

Armida said he was optimistic that next year’s economy will improve along with an increase in people’s spending.

“If public spending increases from now on, it would be better,” said Armida after a coordination meeting at the Coordinating Department of Economy, on Friday.
According to Armida, the government will focus investment in the infrastructure sector.

One of them offered an infrastructure project with a government-private cooperation scheme at the Asia Pacific Minister Conference in mid-April.

“This is one way the government is accelerating infrastructure development,” said Armida.

The Coordinating Minister of Economy Hatta Rajasa said that the government would complete the government working plan for 2011 in May 2010 before it will be brought up before the legislative.

In the National Summit held last year, the government projected economic growth in 2010 of between 5.5 and5,6 percent and between 6 and 6.3 percent in 2011.

In 2012 and 2013 economic growth of between 6.4and 6.9 percent and between 6.7 and 7.4 percent is predicted. By the end of 2014, the economy is predicted to grow by 7 percent.

This is lower than the average rate before the crisis of 8 percent. Hatta assured that the number of infrastructure projects offered in the Asia Pacific Minister Conference would be more numerous than in the original plan.

“More than six projects, but we have to discuss the details,” said Hatta in his office, last Friday.
The six projects are worth no less than US$5.09 billion.
According to Hatta, the government cannot only rely on the state budget to fulfill infrastructure funding, because the portion for this in the state budget is only 17 percent.

Because of that, the government cooperates with private entities through Sarana Multi Infrastruktur funding.
Under this scheme, the government will give special rights to cooperation project initiators in the form of a priority to do work on the projects, even though the price offered during the auction is higher than competitors.

The program is expected to attract investment.