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Wednesday, March 5, 2014

Hatta : Economic Policy Package Third Medium Prepared



Hatta : Economic Policy Package Third Medium Prepared



Coordinating Minister for the Economy , Hatta Rajasa , said the government is preparing a package of measures to improve the performance of the three economies the current account deficit .

" We 're preparing a third package . Hopefully this one can be completed quarter , " he said in Jakarta on Wednesday .

Hatta said the package would regulate the repatriation of profits for foreign companies operating in Indonesia , so that the company does not bring profit for services provided , to go abroad.

"If the profits reinvested in Indonesia , would prevent exit , thereby reducing the deficit ( balance of services ) . Package is that they are interested to re- invest here , " he said .

In addition to publishing package to reduce the deficit on the services account , Hatta said the government will continue the conversion plan to reduce oil imports gas are still dominant contributor trade deficit .

" Imported oil swell when we do not control , how to speed up gas conversion . Additionally we increase exports , we seriously address the current account deficit because we wants under two percent , " he said .

The government issued the first economic policy package that consists of four main package to keep the national economy from the impact of changes in global economic policy at the end of August 2013 .

Overall, the package aims to improve the current account balance , keep the exchange rate , maintaining economic growth , maintain purchasing power and inflation rates , as well as efforts accelerate investment .

After that , the government launched a second economic package in December 2013 that aims to focus on reducing imports of consumer goods and encouraging exports through regulation Ease Import Export Purpose ( KITE ) .

The package is effective because it can reduce the pressure on the current account deficit of which stood at 4.4 percent of GDP in the second quarter of 2013, to 3.2 percent of GDP by the end of 2013 .

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