Few stimuli in new state budget

Few stimuli in new state budget

How to appraise the government's objective of encouraging development through the new state budget? Many people doubt this can be achieved. With a budget deficit as large as 5 percent of gross domestic product (GDP) there isn't much money left to realize such an objective. However, to investors, either domestic or foreign, the most important factor is that political stability and security have not been established. The political intention to do so has often enough been expressed, but tangible results remain absent.

The degree to which security can be established in this country is in direct proportion to the confidence that investors have in Indonesia. This is the most important factor that determines the level of realizable investment in Indonesia. A greater sense of security would also induce larger consumer expenditure, while the growing confidence would bolster the exchange rate of our rupiah and make it easier for us to repay our foreign debts.

In essence, everything depends on the return of political stability and security in this country. Hopefully, the government will succeed in its efforts in this respect.

-- Bisnis Indonesia, Jakarta