REPUBLIKA.CO.ID, JAKARTA - Indonesian government is preparing the third economic policy focusing on balance of payments and current account improvement. Presidential staff for economic development, Firmanzah explained that during the final quarter of 2013 and early 2014, economy of some Asian countries including Japan, India, and China showed weak signal despite the positive trend in Indonesia.
"The third economic policy package aim to boost and restrain capital flow in domestic market," Firmanzah said on Tuesday.
Firman said that Indonesian economy would survive due to its fundamental improvements after the first and second economic policy packages launched in August and December 2013. During 2013, Indonesian economy declined due to the increasing of current account deficit, trade deficit and inflation risk. Government then issued economic policy package in several stages to spur the country's economic growth by strengthening economic fundamental and mitigating global risk uncertainty.
The first package aimed to improve current account, exchange rate appreciation, maintain economic growth, strengthen Indonesians' purchasing power and curb inflation, as well as draw more investment. The second package aimed to improve trade balance through reduction of consumer goods imports and encourage exports through new trade regulation. While the third package will organize further profits by foreign investors to reinvest in Indonesia.
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