Over Rp200 Trillion To Be Allocated For Infrastructure Development

Jakarta, Aug 14 (ANTARA) - The Indonesian government plans to set aside more than Rp200 trillion (over US$20 billion) for infrastructure development in the draft budget of 2013, chief economic minister Hatta Rajasa said. "Most of the funds will be for infrastructure projects and the total is already close to Rp200 trillion. I think it will be bigger than that," he said at a coordination meeting on land settlement for Jatigede Dam at his office here on Tuesday. He said the capital expenditure would be bigger than in the 2012 revised budget at Rp168.7 trillion. He said the increased budget was needed to boost growth set at the 2013 draft budget at 6.8 to 7.2 percent. "The growth will be driven by investment, government spending and public consumption," he said. Hatta said the government would also plan an expansive economy which is focused on productive projects. "We must reduce unproductive spending," he added. He said if productive development and growth figures could be maintained it is hoped unemployment would continue to drop from 6.3 percent in February 2012. "Unemployment has dropped because some of job-seekers have been accommodated in businesses such as micro-, small and medium businesses," he said. Hatta said programs like small holders` credit scheme (KUR) and self-reliant community empowerment program (PNPM) could help empower the people. Minister of National Development Planning Armida Alisjahbana also meanwhile said she hoped the increased budget for capital spending for infrastructure development projects in the 2013 draft budget could boost the country`s economic growth. "We have a target and therefore we must maintain the momentum of growth," she said.