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7.
PRESIDENT: 6-7 PCT ECONOMIC GROWTH TO BE REACHED
Jakarta
- President Susilo Bambang Yudhoyono believed Indonesia's economy could
grow by six to seven percent as of 2007, provided that the government and
the business community would share their duties and responsibilities in
synergy.
"God
willing, theoretically and empirically, such a growth rate could be
reached. It could even be higher," the president said in his
welcoming speech at the 2007 national leadership meeting of the Indonesian
Chamber of Commerce and Industry (Kadin) in Jakarta on Monday (26/03).
The
meeting was also attended by several cabinet ministers including Economic
Affairs Coordinating Minister Boediono, Coordinating Minister for People's
Welfare Aburizal Bakrie, State Minister for Cooperatives and Small and
Medium-scale Enterprises Surya Dharma Ali, Trade Minister Mari Pangestu
and Cabinet Secretary Sudi Silalahi.
According
to the president, the sectors which should be improved to reach the
economic growth of six to seven percent include production, consumption
and investment as well as the real sectors.
"To
develop the business and industrial fields and increase the consumption
sector, production of the business quarters should be increased to boost
the people's purchasing power," he said.
The
efforts to boost the people's purchasing power could be made by the
government and the private sector, he said, adding that the government
through the fiscal increase in the state budget and regional budgets,
could raise the people's real purchasing power like the increase in the
civil servants' salaries in 2005 and 2006. The government is planning to
further increase civil servants' salaries in 2007.
"Through
the State Budget and Regional Budgets, the government could also lower the
cost of education, healthcare and public services, to enable the people to
spend their income more on goods and services of the private sector,"
he said.
He
also said that under the current fiscal policy, the government could
create job opportunities through its programs on infrastructure
development in the sectors of transportation, agriculture, education and
healthcare, which were expected to sharpen the competitive edge and speed
up production processes.
The
head of state also said that the policy to increase the people's
purchasing power would be focused on the creation of job opportunities to
raise the people's income.
Meanwhile,
Kadin's General Chairman MS Hidayat said 2007 was momentum for the
government to materilize its economic growth targets.
"The
president's speech on economic growth by six to seven percent is rational,
but there are a number of barriers to implement it, which must be
solved," he said. He said if in 2007, the government and the private
sector could materialize the economic growth, the target to reach the per
capita income of US$ 6,600 in 2010 could be met.
He said that measures the
government had taken to overcome the obstacles include the abrogation of
about 200 regional regulations for failure in supporting the business
sector. (Antara, 27/3/2007).
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