Thu, 17 Jun 2010

Jakarta (ANTARA News) - Finance Minister Agus Martowardojo said the national economy was showing steady growth in the first semester this year and this was reinforcing confidence the annual growth target of 6.1 to 6.4 percent will be achieved.

"The picture obtained through an early observation looks good. So there is a shared view that we can grow between 6.1 and 6.4 percent and this shows our optimism towards 2011. So in general what we have achieved so far is quite good," he said after attending a plenary meeting of the House of Representatives here on Thursday.

He said as a member of the G-20 Group Indonesia needs to keep its economy sustainable, strong and balanced in which the ratio between debt and budget deficit must be kept at a sound level.

Apart from that Indonesia also needs to build trust in connection with issues such as how to increase trade and investment, to meet the Millennium Development Goals and reduce subsidy in the energy sector.

"We could conduct it during the G-20 meeting. It is because Indonesia in general wishes G-20 countries will not limit inappropriately development of trade and investment," he said.

Regarding the national budget Agus said in terms of state revenue it grew by more than two percent compared with the same period last year but he admitted that state spending and expenditures had not been done maximally.

"It terms of spending it is a bit worse compared with the same period last year. We are questioning why spending is slower this year than last year," he said.
Agus however said he was optimistic budget absorption would speed up after the existing procedures and processes being done while maintaining prudence.

"We will start identifying the problems. As the cabinet is still new programs of budget use might change. The budget authorities have changed. Perhaps there have also been efforts to put ministries in order down to regional offices. We also think perhaps there will be new policies with regard to procurement or realization," he said.