REPUBLIKA.CO.ID, JAKARTA - Coordinating Minister for Economic Affairs, Hatta Rajasa said that there were six steps taken by government to maintain economic growth and stability in 2014. First, government will maintain government spending quality to stimulate economic growth.
"There must be a room in our fiscal policy this year for capital expenditure," Rajasa said recently.
Government increases its capital spending by 6.7 percent or about 206 trillion IDR in 2014. Most of it is channeled to infrastructure spending, while the other for personnel expenditure or 19.6 percent of total budget.
Second, government will maintain purchasing power by controlling inflation rate in range of 3.5 to 5.5 percent. Third, government will encourage investment growth. It deals to employment rate. Government will not let unemployment for any reason.
Fourth, government will improve the competitiveness of non-oil export products, particularly through market diversification to increase diversity and quality of products. Fifth, government will control imports that potentially reduce domestic products competitiveness, as well as expand domestic market.
Sixth, government will strengthen domestic trade to maintain price stability, smoothness of goods and creating business climate. National logistic system is very important in here.
"Therefore, government will accelerate the whole things, related to connectivity, ports, airports, as well as transport models.