ID :
22772
Sun, 10/05/2008 - 23:38
Auther :
Shortlink :
http://m.oananews.org//node/22772
The shortlink copeid
INDUSTRY MINISTER: GOVT TO REVISE INDUSTRIAL GROWTH TARGET
Jakarta, Oct 5 (ANTARA) - Indonesian industry minister Fahmi Idris said here on Sunday the government would revise its industrial growth target in 2009 which has been set at five percent because of the financial crisis in the US.
"The country's industrial growth will certainly be affected by the US crisis although it will NOT be very serious," he said after a coordination meeting of economic ministers and central bank officials.
The US market which is predicted to weaken will certainly affect demand for industrial products from the country such as textiles and textile products and footwear products, he said.
He said "a quarter of our textile and textile product exports that go to the US will be affected and so will exports of shoes and other similar products but not all of our industrial commodities go the US."
The financial crisis in the US has caused tight bank liquidity and in turn a slump in investment credit distribution, he said. To move the real sector, he said, foreign direct investment has to be increased.
With regard to that he said the government need to give a substantial additional fiscal incentive to attract foreign investors to invest in the sector.
"The investors are looking for the best incentive the government would give. We have discussed various approaches and we have also had Government Regulation Number 1 of 2007 whose improvement would soon be completed," he said.
He said the extension of incentive would indeed reduce fiscal income but in the long term it will improve the country's financial structure and real sector.
"The country's industrial growth will certainly be affected by the US crisis although it will NOT be very serious," he said after a coordination meeting of economic ministers and central bank officials.
The US market which is predicted to weaken will certainly affect demand for industrial products from the country such as textiles and textile products and footwear products, he said.
He said "a quarter of our textile and textile product exports that go to the US will be affected and so will exports of shoes and other similar products but not all of our industrial commodities go the US."
The financial crisis in the US has caused tight bank liquidity and in turn a slump in investment credit distribution, he said. To move the real sector, he said, foreign direct investment has to be increased.
With regard to that he said the government need to give a substantial additional fiscal incentive to attract foreign investors to invest in the sector.
"The investors are looking for the best incentive the government would give. We have discussed various approaches and we have also had Government Regulation Number 1 of 2007 whose improvement would soon be completed," he said.
He said the extension of incentive would indeed reduce fiscal income but in the long term it will improve the country's financial structure and real sector.
