ID :
30107
Thu, 11/13/2008 - 23:41
Auther :
Shortlink :
https://www.oananews.org//node/30107
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RI'S 2009 EXPORTS PROJECTED TO GROW 9.5-11 PCT
Jakarta, Nov 13 (ANTARA) - Indonesia's exports of goods and services are expected to grow 9.5 to 11 percent in 2009 or down from the minimum target of 12.5 percent set for 2008, National Development Planning Minister Paskah Suzetta said.
"The future challenge is the low prices of commodities such as crude palm oil and mining products which may continue into 2009," he said at a seminar on investment prospects in 2009 here Thursday.
He said the current global financial crisis had caused a decline in export demand while importers meet difficulties in opening letters of credit because banks had tightened liquidity.
The minister said the cost of exports had also increased because of a surge in insurance premiums.
He said the predictions could still change depending on the situation next year. "It is difficult to predict when the situation will end," he said.
In the face of economic uncertainties in the world next year, he said, the government had set three different growth scenarios for the national economy : a pessimistic one (5 to 5.5 percent), a moderate one (5.5 to 5.8 percent) and an optimistic one (5.8 to 6 percent).
He said the government had made the scenarios because the state budget was fluctuative and assumptions could change anytime. He said it was not impossible for the 2009 budget to be changed although it had been approved by the House of Representatives.
The government, however, could give the assurance that the budgets for infrastructure development, poverty alleviation and domestic market stimuli would not change.
The weakening world economy next year is believed to have an impact on foreign investment in the country. High interest rates and shortage of liquidity would also hinder development of new businesses.
Apart from financial factors, there were other problems that would limit the country's ability to attract foreign investment, namely limited infrastructure facilities, the manpower law, shortage of electricity and increasing competition, he said.
"Foreign investment growth next year is expected to reach 10 to 11.9 percent or below the growth target set for 2008," he said.
Therefore, government expenditures would be the supporting factor for economic growth, although it was small (4.6 to 5 percent). "Government expenditures until the end of 2008 will reach 5.8 to 6 percent," he said.
He said the government would also expedite absorption of the budget by improving the planning and absorption mechanisms.
"We are now revising Presidential Decree No 80/2003 which has made project officers afraid to expedite expenditures," he said.
He said all sectors, ministries or institutions could expedite bidding processes in 2009 although their project proposals had not yet been approved by the finance minister.
"They can continue opening tenders but they must be adjusted to the budget," he said.
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"The future challenge is the low prices of commodities such as crude palm oil and mining products which may continue into 2009," he said at a seminar on investment prospects in 2009 here Thursday.
He said the current global financial crisis had caused a decline in export demand while importers meet difficulties in opening letters of credit because banks had tightened liquidity.
The minister said the cost of exports had also increased because of a surge in insurance premiums.
He said the predictions could still change depending on the situation next year. "It is difficult to predict when the situation will end," he said.
In the face of economic uncertainties in the world next year, he said, the government had set three different growth scenarios for the national economy : a pessimistic one (5 to 5.5 percent), a moderate one (5.5 to 5.8 percent) and an optimistic one (5.8 to 6 percent).
He said the government had made the scenarios because the state budget was fluctuative and assumptions could change anytime. He said it was not impossible for the 2009 budget to be changed although it had been approved by the House of Representatives.
The government, however, could give the assurance that the budgets for infrastructure development, poverty alleviation and domestic market stimuli would not change.
The weakening world economy next year is believed to have an impact on foreign investment in the country. High interest rates and shortage of liquidity would also hinder development of new businesses.
Apart from financial factors, there were other problems that would limit the country's ability to attract foreign investment, namely limited infrastructure facilities, the manpower law, shortage of electricity and increasing competition, he said.
"Foreign investment growth next year is expected to reach 10 to 11.9 percent or below the growth target set for 2008," he said.
Therefore, government expenditures would be the supporting factor for economic growth, although it was small (4.6 to 5 percent). "Government expenditures until the end of 2008 will reach 5.8 to 6 percent," he said.
He said the government would also expedite absorption of the budget by improving the planning and absorption mechanisms.
"We are now revising Presidential Decree No 80/2003 which has made project officers afraid to expedite expenditures," he said.
He said all sectors, ministries or institutions could expedite bidding processes in 2009 although their project proposals had not yet been approved by the finance minister.
"They can continue opening tenders but they must be adjusted to the budget," he said.
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E014
