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JAKARTA—Indonesian
President Susilo Bambang Yudhoyono’s government will
boost spending by 48 percent to 51.8 trillion rup- iah
($5.4 billion) on roads and ports to help palm oil and
rubber producers benefit from demand in India and China.
The
government will increase public works spending by 41
percent to 35.6 trillion rupiah next year, which will be
used to build and repair roads in eight of its biggest
islands. An additional 16.2 trillion rupiah will be
spent on ports, railways and airports, Yudhoyono said
Thursday in a speech in parliament.
Yudhoyono, who will seek reelection in two years, wants
Indonesia to take advantage of rising demand for palm
oil, coal and other commodities in India and China, the
world’s two-fastest growing major economies. That may
help him meet his 2004 election pledge to cut poverty by
half and reduce unemployment.
“The
priorities are to increase investments, exports and job
opportunity and revitalize agriculture, fishery,
forestry and village development,” Yudhoyono said in the
speech on the eve of the nation’s 62nd Independence Day
from the Dutch.
Indonesia’s
economy, the largest in Southeast Asia, expanded 6.3
percent in the second quarter, buoyed by rising exports
and increasing local demand. The government forecasts
gross domestic product to expand 6.8 percent in 2008.
“If you
look at Southeast Asia, nobody can compete with
Indonesia in these two areas, agriculture and
forestry,’’ Indonesian billionaire Putera Sampoerna said
before the speech. “We are concentrating now on the
agricultural sector.’’
Sampoerna, who owns palm-oil plantations, has businesses
ranging from telecommunications to cigarettes.
Building
new roads and other infrastructure to focus on
commodities and other exports may help
Indonesia, which
created 2.4 million new jobs in the 12 months ended
February. The country also reduced the number of poor
people, defined as those surviving on less than 166,697
rupiah, or $17.50, a month, to 1.9 million, according to
the government. (Bloomberg) |
