Kalla: RI will withstand impact of US financial crisis

The Jakarta Post , Jakarta | Mon, 10/06/2008 2:14 PM | National

Vice President Jusuf Kalla on Monday said he was very confident Indonesia would be able to withstand the impact of the financial crisis in the United States.

"We will see an economic slowdown at home but I am sure it will not be as bad as in other countries," Kalla said, as quoted by Antara, during an event at Hasanuddin University in Makassar, South Sulawesi.

He said the financial crisis in the United States would depress Indonesia`s exports, but he was sure the country's domestic economic strength and market would be able to overcome the setback.

"I am optimistic that with 240 million domestic consumers we can save our economy," he said.

According to Kalla, the U.S. economic crisis began with the Iraq war, leading the U.S. government to incur huge expenditures. As a result, the United States suffered a budget deficit, and to cover the deficit, interest rates were raised.

Increased interest rates, however, caused many home owning mortgages to turn bad causing a crisis in this sector.

During the 1998 crisis, Indonesia suffered a deficit in its budget and failed to pay its debts, but now the situation is different, Kalla said.

"With a stronger economy now, we can handle the situation." (dre)

Comments (1) | Post comment

A | A | A |