President announces priorities in facing crisis

Wednesday, 31 December 2008
The Jakarta Post

President Susilo Bambang Yudhoyono on Wednesday announced seven priorities that would guide economic policy making in weathering pressure from the global liquidity in 2009.

The priorities are:

1. Protecting the workforce from the impact of the global economic crisis

2. Controlling inflation

3. Maintaining the growth of the real economy

4. Safeguarding the people's purchasing power

5. Protecting the poor

6. Improving self sufficiency in food and energy

7. Maintaining economic growth

Yudhoyono said he was told by his aids that December had seen a price deflation and that the coming months would likely be better in terms of the relation of price fluctuation with the people's purchasing power.

To maintain the growth of the real sector, Yudhoyono said that the government would give more fiscal incentives so that businesses would refrain from down sizing their workers as a response to the global economic slow down.

Meanwhile, he said, the government would raise the salary of civil workers and raise the minimum pay of workers next year.

"For those that do not have a regular salary, we have other plans in the state budget," he said.

The President said that he hoped the country's economy would still be able to grow by 4.5 percent next year despite a significant slow down of demand for Indonesia's products from traditional export destinations such as the U.S., Japan and Europe.

"Four point five percent is a realistic figure. Moreover, if we can work harder, we may be able to reach higher economic growth," he said.