Indonesia to recover faster after August special session: Ramli
Indonesia to recover faster after August special session: Ramli
KUALA LUMPUR (AFP): Indonesia's economy will recover faster
after Aug. 1 whatever the outcome of a parliamentary session
which could impeach the president, Finance Minister Rizal Ramli
said Wednesday.
Ramli warned however that Indonesia's budget deficit this year
could balloon to 6 percent of gross domestic product (GDP), from
3.7 percent in 2000, amid a weakening rupiah and rising interest
rates.
He said tax enforcement and privatization would be speeded up.
Speaking at an economic conference, Ramli said there was still
a chance of "political compromise" at the August parliamentary
session but did not elaborate.
"After August there will be a political resolution whatever
the outcome...the speed of recovery and stability will be
expedited," he said.
The session will demand President Abdurrahman Wahid account
for his rule and answer allegations of involvement in two
financial scandals.
A rejection of his account would end Wahid's tenure as the
country's first freely-elected president.
Wahid, who has denied any wrongdoing and vowed to serve out
his term until 2004, warned Wednesday he was ready to declare a
state of emergency and call in the military to save his
presidency.
Ramli said the budget deficit rises by RP 8 trillion to Rp 9
trillion (US$708 million-$796 million) with a depreciation of Rp
1,000 to the dollar, and by another RP 2.3 trillion with a 1
percent increase in interest rates.
The deficit could therefore balloon to 6 percent of GDP but
Rizal said the government would be "more conservative" and aimed
to contain it at last year's level of 3.7 percent.
He said tax enforcement among richer citizens would be stepped
up, with four cases of tax evasion to be brought to court next
week.
The government, which now controls about 80 percent of
economic assets, would also carry out a backlog of
privatizations.
Rizal said negative perceptions about Indonesia were "mostly
based on opinions rather than facts."
He said Indonesia had gone through a democratic transition
after president Soeharto's fall in 1998, had decentralized
decision-making and was now in economic recovery.
"We are moving in the right direction, although I am not happy
with the speed. We are hindered by political uncertainty but we
are determined to move it forward quicker than expected," he
added.