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27631
Fri, 10/31/2008 - 01:22
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http://m.oananews.org//node/27631
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News Focus: LEGISLATOR HAILS GOVT ANTICIPATORY STEPS AGAINST CRISIS
By Andi Abdussalam
Jakarta, Oct 30 (ANTARA) - The 10-point policy announced by President Susilo Bambang Yudhoyono to anticipate the impact of the current global financial crisis was welcomed by a legislator, saying the government had taken the right step to bolster the state budget in stimulating Indonesia's economic growth.
"The steps taken by the government are in line with our hope," Deputy Chairman of Commission XI of the House of Representatives (DPR), which deals with national development and financial affairs, Olly Dondokambey, said.
President Susilo Bambang Yudhoyono held a limited cabinet meeting Tuesday night following the worsening of the rupiah's exchange rate which early in the day reached Rp12,000 per US dollar.
In the meeting -- attended by Vice President Jusuf Kalla, Bank Indonesia (BI) Governor Boediono and other relevant ministers-- the government discussed the latest developments in the financial crisis and issued a 10-point anticipatory policy in the event of a prolonged economic crisis until 2009.
The government among other things decided to buy back state debentures (SUN), cut down palm oil export tax to nil percent and proposed to the House a flexible 2009 state budget that could be revised anytime when the crisis worsened in 2009.
Dondokambey, who comes from the Indonesian Democratic Party Faction of the House, reminded the government, however, that it should be cautious in carrying out a flexible budget.
"The House has given the government flexibility in the 2008 state budget but it was limited to matters on the oil prices which were fluctuating at that time. However, flexibility the government is proposing for the 2009 state budget seems to be different from the 2008 one. If what the government is proposing is flexibility in changing the whole posture of the state budget, we, of course, would object to it because a law on it should be issued," he said.
Yet, as whole, the politician hailed the government's 10-point policy. He said that in carrying out the policy the government should not hesitate to apply the existing mechanism such as the implementation of government regulations in lieu of law it had issued.
"The government should not be afraid of facing any risks because otherwise it could fail to achieve the target as set in the state budget," he said.
According to Finance Minister Sri Mulyani, the government hoped the House of Representatives (DPR) would agree that the 2009 state budget would be made flexible in an effort to face the global financial crisis which is expected to be protracted to next year.
"The financial crisis is expected to last until 2009 so that the government has to have the capacity to revise itself the state budget without reducing the DPR's budgetary right," Sri Mulyani said when announcing the government 10-point policy.
She said all policies are taken by the government to cope with market turbulence and to protect three pillars, namely the balance of payment, BI credibility and the credibility of the state budget.
"The aim of this policy is to safeguard the national economy so that it would not experience serious disturbance and to provide response to the difficulties being faced by economic players," she said.
She said other policy taken by the government to buy back the state debentures in order to stabilize market conditions and to maintain market players' confidence.
"The buy-back of the SUN will be carried out in stages," the minister said.
The government also took a step to maintain the continuation of the balance of payment and the availability of foreign exchange reserves. In this case, state-owned enterprises (SOE) are obliged to keep their foreign exchange reserves at domestic banks. Transactions will be carried out through state-owned company's banks with the requirement that the SOE should file and renew a daily report.
The state-owned companies are also ordered not to carry out fund transfers from banks to banks in an effort to maintain liquidity stability and prevent competition in fixing interest rates.
In order to accelerate infrastructure development the government decided to accelerate the implementation of projects that have won financial commitment, both bilateral and multilateral.
"The government will try its best to gain approval for several projects which are to be financed with foreign loans so that the external debts would soon be transferred to the government's account so that our foreign exchange reserves will increase," the minister said.
In order to keep the continuation of the state balance of payment, the government will also utilize the swap arrangement which has been agreed upon by ASEAN+3, namely China, South Korea and Japan.
"This will be done in order to safeguard the balance of payment," Sri Mulyani said.
In order to guarantee the continuation of export performance and the payment from buyers, the government and BI will provide an export re-discount facility which will be effective as of November 1, 2008.
"The aims is to keep the continuation of exports by providing a payment risk guarantee. The government will monitor it tightly so that this facility will not be abused by exporters, fictitious exporters, for example," the minister said.
In the real sector, the government is taking a policy to secure the market for Indonesia's crude palm oil (CPO) exports. Beginning November 1, 2008, the government cut its CPO export tax from 2.5 percent to zero percent.
In an efforts to prevent the entry into Indonesia of illegal imports, the government will issue a regulation which will limit the import of certain goods which will also be enforced beginning November 1, 2008.
Commodities whose imports will be restricted are garment, electronics, food, drinks, toys, and footwear. These goods can only be imported by registered/authorized importers on condition that the goods should be verified at ports of origin.
The imports of these commodities will be unloaded only at designated ports, namely Tanjung Priok port, Tanjung Emas port, Tanjung Perak port, Belawan port, Makassar port, and two airports, namely Soekarno-Hatta and Juanda airports.
The government will also issue a home affairs ministerial degree on the establishment of an integrated task force tasked with supervising goods in circulation. The regulation will also be in force as of November 1.
***2***
(T.A014/A/HNG/A/S012)
Jakarta, Oct 30 (ANTARA) - The 10-point policy announced by President Susilo Bambang Yudhoyono to anticipate the impact of the current global financial crisis was welcomed by a legislator, saying the government had taken the right step to bolster the state budget in stimulating Indonesia's economic growth.
"The steps taken by the government are in line with our hope," Deputy Chairman of Commission XI of the House of Representatives (DPR), which deals with national development and financial affairs, Olly Dondokambey, said.
President Susilo Bambang Yudhoyono held a limited cabinet meeting Tuesday night following the worsening of the rupiah's exchange rate which early in the day reached Rp12,000 per US dollar.
In the meeting -- attended by Vice President Jusuf Kalla, Bank Indonesia (BI) Governor Boediono and other relevant ministers-- the government discussed the latest developments in the financial crisis and issued a 10-point anticipatory policy in the event of a prolonged economic crisis until 2009.
The government among other things decided to buy back state debentures (SUN), cut down palm oil export tax to nil percent and proposed to the House a flexible 2009 state budget that could be revised anytime when the crisis worsened in 2009.
Dondokambey, who comes from the Indonesian Democratic Party Faction of the House, reminded the government, however, that it should be cautious in carrying out a flexible budget.
"The House has given the government flexibility in the 2008 state budget but it was limited to matters on the oil prices which were fluctuating at that time. However, flexibility the government is proposing for the 2009 state budget seems to be different from the 2008 one. If what the government is proposing is flexibility in changing the whole posture of the state budget, we, of course, would object to it because a law on it should be issued," he said.
Yet, as whole, the politician hailed the government's 10-point policy. He said that in carrying out the policy the government should not hesitate to apply the existing mechanism such as the implementation of government regulations in lieu of law it had issued.
"The government should not be afraid of facing any risks because otherwise it could fail to achieve the target as set in the state budget," he said.
According to Finance Minister Sri Mulyani, the government hoped the House of Representatives (DPR) would agree that the 2009 state budget would be made flexible in an effort to face the global financial crisis which is expected to be protracted to next year.
"The financial crisis is expected to last until 2009 so that the government has to have the capacity to revise itself the state budget without reducing the DPR's budgetary right," Sri Mulyani said when announcing the government 10-point policy.
She said all policies are taken by the government to cope with market turbulence and to protect three pillars, namely the balance of payment, BI credibility and the credibility of the state budget.
"The aim of this policy is to safeguard the national economy so that it would not experience serious disturbance and to provide response to the difficulties being faced by economic players," she said.
She said other policy taken by the government to buy back the state debentures in order to stabilize market conditions and to maintain market players' confidence.
"The buy-back of the SUN will be carried out in stages," the minister said.
The government also took a step to maintain the continuation of the balance of payment and the availability of foreign exchange reserves. In this case, state-owned enterprises (SOE) are obliged to keep their foreign exchange reserves at domestic banks. Transactions will be carried out through state-owned company's banks with the requirement that the SOE should file and renew a daily report.
The state-owned companies are also ordered not to carry out fund transfers from banks to banks in an effort to maintain liquidity stability and prevent competition in fixing interest rates.
In order to accelerate infrastructure development the government decided to accelerate the implementation of projects that have won financial commitment, both bilateral and multilateral.
"The government will try its best to gain approval for several projects which are to be financed with foreign loans so that the external debts would soon be transferred to the government's account so that our foreign exchange reserves will increase," the minister said.
In order to keep the continuation of the state balance of payment, the government will also utilize the swap arrangement which has been agreed upon by ASEAN+3, namely China, South Korea and Japan.
"This will be done in order to safeguard the balance of payment," Sri Mulyani said.
In order to guarantee the continuation of export performance and the payment from buyers, the government and BI will provide an export re-discount facility which will be effective as of November 1, 2008.
"The aims is to keep the continuation of exports by providing a payment risk guarantee. The government will monitor it tightly so that this facility will not be abused by exporters, fictitious exporters, for example," the minister said.
In the real sector, the government is taking a policy to secure the market for Indonesia's crude palm oil (CPO) exports. Beginning November 1, 2008, the government cut its CPO export tax from 2.5 percent to zero percent.
In an efforts to prevent the entry into Indonesia of illegal imports, the government will issue a regulation which will limit the import of certain goods which will also be enforced beginning November 1, 2008.
Commodities whose imports will be restricted are garment, electronics, food, drinks, toys, and footwear. These goods can only be imported by registered/authorized importers on condition that the goods should be verified at ports of origin.
The imports of these commodities will be unloaded only at designated ports, namely Tanjung Priok port, Tanjung Emas port, Tanjung Perak port, Belawan port, Makassar port, and two airports, namely Soekarno-Hatta and Juanda airports.
The government will also issue a home affairs ministerial degree on the establishment of an integrated task force tasked with supervising goods in circulation. The regulation will also be in force as of November 1.
***2***
(T.A014/A/HNG/A/S012)
