RI considers revising 2009 budget

The Associated Press ,  Jakarta   |  Tue, 02/17/2009 4:00 PM  |  National

Indonesia may revise its 2009 budget to respond to a drop in commodity prices and export demand caused by the global economic slowdown, lawmakers and economists said Tuesday.

Rusman Heriawan, who head's the Central Statistic Agency, said Southeast Asia's largest economy grew by 5.2 percent in the fourth quarter of 2008 from the same period one year earlier - the slowest year-on-year figure since mid-2006.

A sharp drop in exports, which account for 30 percent of Indonesia's gross domestic product, was the main reason for the backward slide, he said, adding that overseas buyers have cut back on buying the country's commodities and manufactured goods.

Though Indonesia has weathered the global crisis better than many countries - its economy expanding by 6.1 in 2008 - parliament is discussing possible revisions to this year's budget as result, said Suharso Moenoarfa, who sits on the parliamentary budget committee.

A decision could be made as early as this week, he said, adding that one proposal is to incorporate an economic stimulus program and provide ways for the government to make quick adjustments to respond to global financial volatility.
 

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