President Susilo Bambang Yudhoyono says that all government policies are consistent with the government's initial orientation on economic growth, unemployment reduction and poverty reduction.
"Since the end of 2004 we have formulated our development effort for prosperity and oriented it toward growth as well as equality," said the President during a plenary cabinet meeting at the State Secretariat here Tuesday. The meeting was also attended by the heads of non-departmental state institutions.
Yudhoyono said the government made economic growth, the handling of unemployment and poverty reduction its priorities at its inception.
"Our policies are still consistent with these priorities. For example, we are still conducting the fiscal policy in the same direction and there are some components of our spending allocated
to stimulate growth," the President said.
Yudhoyono said the allocation for working capital and growth stimulation capital in the state budget continually increased every year.
In 2005, the government allocated Rp 32.9 trillion (US$3.6 billion) for working capital, and it has increased by Rp 89.1 trillion in 2008 and is expected to reach Rp 99 trillion next year.
"This is evidence of government consistency in stimulating economic growth," the President.
In an attempt to reduce unemployment, Yudhoyono said, the government had disbursed People's Business Credit (KUR).
"About Rp 8 trillion of credit has been disbursed and we expect that it will be reach about Rp 14 trillion. The disbursement of the fund is expected to create more job opportunities."
President Yudhoyono said that in its poverty reduction program, the government had also conducted some programs to increase people's standard of living.
"Budget allocation for poverty reduction program is increased every year. In 2004, there was Rp 19 trillion, and it is planned to reach Rp 70 trillion in 2009. The funds allocated this year have reached Rp 58 trillions," Yudhoyono said.
President Yudhoyono said the amount of funds allocated has shown that the government is consistent with its initial commitment to economic growth, unemployment and poverty reductions.
In the meeting, which was also attend by Vice President Jusuf Kalla, the President also warned all minister and state high officials that with the amount of funds being disbursed, there would be no excuse for the unemployment and poverty reduction programs not to reach their goals.
The plenary cabinet meeting was held to discuss security and political issues and to hear explanations from the coordinating minister for political, legal and security affairs and the home
affairs minister about the process of the legislative election and the campaigns.
At the meeting, explanations were also given by the acting coordinating minister for economic affairs about the 2009 budget and the draft of the government's 2008-2009 financial note, which will be presented by the President to the House of Representatives plenary session on Aug. 15. (**)
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