Economic ministers facing three challenges : observer
Jakarta (ANTARA News) - Indonesian economic ministers are facing at least three main challenges, according to economic observer Tony A Prasentyantono.
"The first is realizing infrastructure projects to promote efficiency and then curbing inflation and attracting investment," he said to ANTARA News following the inauguration of the new cabinet.
In the new cabinet for 2009-2014 Sri Mulyani remains the finance minister. Mari Pangestu also still holds the post of trade minister. The coordinating minister for the economy however is now held by Hatta Radjasa, the former minister/state secretary while the minister of industry is held by MS Hidayat, the present chief of the Indonesian Chamber of Commerce and Industry.
Tony who is also the chief economist of state-owned Bank BNI said that infrastructure development had so far been very slow and so its power to help promote the economy was weak.
He said the structure of the national budget had to be improved especially by increasing tax income and tax ratio so that the tax ratio could reach 20 percent like in developed countries.
"If this could be done, the dependence on foreign debt could be reduce thus creating fiscal self-sufficiency," he said.
Tony also said that industrial development also had to be expedited particularly industries that contribute much to gross domestic product growth and employment.
"Our problem is poverty and unemployment. These two problems are our classic economic problems which have so far been overcome by development of informal and agricultural sectors whose added value was small.
He said industrialization could become a cure although it also required improvement of education which had been pushed with a budget amounting to 20 percent of the national budget.
Regarding the first 100 days of their term he said they had to maintain macro-economic stability. He said signs showed in the past nine months had been good meaning that macro-economic stability had been maintained well.
"As the rupiah is now strengthening while inflation is low likely reaching 3.6 percent at the most until the end of the year we are optimistic economy could grow up to 4.3 percent," he said.(*)
"The first is realizing infrastructure projects to promote efficiency and then curbing inflation and attracting investment," he said to ANTARA News following the inauguration of the new cabinet.
In the new cabinet for 2009-2014 Sri Mulyani remains the finance minister. Mari Pangestu also still holds the post of trade minister. The coordinating minister for the economy however is now held by Hatta Radjasa, the former minister/state secretary while the minister of industry is held by MS Hidayat, the present chief of the Indonesian Chamber of Commerce and Industry.
Tony who is also the chief economist of state-owned Bank BNI said that infrastructure development had so far been very slow and so its power to help promote the economy was weak.
He said the structure of the national budget had to be improved especially by increasing tax income and tax ratio so that the tax ratio could reach 20 percent like in developed countries.
"If this could be done, the dependence on foreign debt could be reduce thus creating fiscal self-sufficiency," he said.
Tony also said that industrial development also had to be expedited particularly industries that contribute much to gross domestic product growth and employment.
"Our problem is poverty and unemployment. These two problems are our classic economic problems which have so far been overcome by development of informal and agricultural sectors whose added value was small.
He said industrialization could become a cure although it also required improvement of education which had been pushed with a budget amounting to 20 percent of the national budget.
Regarding the first 100 days of their term he said they had to maintain macro-economic stability. He said signs showed in the past nine months had been good meaning that macro-economic stability had been maintained well.
"As the rupiah is now strengthening while inflation is low likely reaching 3.6 percent at the most until the end of the year we are optimistic economy could grow up to 4.3 percent," he said.(*)