Government to spend Rp 50 trillion to stimulate growth

Sunday, 4 January 2009
The Jakarta Post

President Susilo Bambang Yudhoyono said Sunday the government had allocated Rp 50 trillion (about US$4.9 billion) for next year to tackle the consequences of the global financial crisis.

Speaking to a press conference on the sidelines of his visit to Ragunan Zoo in Jakarta, the President said Rp 38 trillion of the stimulus fund would come from what was left over from the 2008 budget and Rp 12 trillion from the 2009 state budget's reserve fund.

He said the government's revenue for 2008 was higher than the forecast set in the budget, hence the available Rp 38 trillion.

He said that consequently the 2008 budget deficit was lower than expected: 0.1 percent of GDP compared to the 2.1 percent stated in the budget.