Indonesia plans fiscal stimulus for businesses
JAKARTA, Oct. 27 (Xinhua) -- Indonesia planned to introduce fiscal stimulus for business, including subsidies and tax cuts in a bid to boost economy and purchasing power, a paper said here Monday.
The weakening of global commodity prices and high interest rate had hampered Indonesian businessmen from expanding their business.
Indonesian Coordinating Minister for Economy Sri Mulyani quoted by Bisnis Indonesia as saying that the government would protect the producers from sustaining their business.
"It could be in the form of reducing export tax, providing varies subsidies or decreasing interest rate," she said.
The Indonesian central bank for the sixth time hiked its benchmark interest rate by 25 basis points to 95 percent on Oct. 7 to reduce high inflation. The country's annual inflation hike in September reached 12.14 percent, the fastest pace in three years.
Mulyani said that the source of the subsidies would be from the state budget under the approval of the parliament.
Head of fiscal and monetary of the Indonesian chambers of commerce Bambang Soesatyo said that the recovery of real sector and raising people affordability had been a pre-requisite on building investors confidence in the country given population to over 230 million people.
As the falling of overseas demand on the Indonesia's export, the government planned to focus on the huge domestic market.
The weakening of global commodity prices and high interest rate had hampered Indonesian businessmen from expanding their business.
Indonesian Coordinating Minister for Economy Sri Mulyani quoted by Bisnis Indonesia as saying that the government would protect the producers from sustaining their business.
"It could be in the form of reducing export tax, providing varies subsidies or decreasing interest rate," she said.
The Indonesian central bank for the sixth time hiked its benchmark interest rate by 25 basis points to 95 percent on Oct. 7 to reduce high inflation. The country's annual inflation hike in September reached 12.14 percent, the fastest pace in three years.
Mulyani said that the source of the subsidies would be from the state budget under the approval of the parliament.
Head of fiscal and monetary of the Indonesian chambers of commerce Bambang Soesatyo said that the recovery of real sector and raising people affordability had been a pre-requisite on building investors confidence in the country given population to over 230 million people.
As the falling of overseas demand on the Indonesia's export, the government planned to focus on the huge domestic market.