President Susilo Bambang Yudhoyono said Thursday infrastructure projects would be among his priorities over the next five years to boost growth and reduce poverty.
With foreign investment will likely start flowing in again in the second half of this year amid signs of a global economic recovery, Indonesia should make the most of it by attracting funds to help finance key development projects, including those in infrastructure, Yudhoyono said.
"God willing, we'll continue developing infrastructure on a larger scale within the next five years, using multi-year budgets," he said at a press conference at the State Palace, a day after the country held its second direct presidential election in history.
"We'll develop agricultural irrigation projects on a larger scale too."
With the official tally to be announced July 25, all polling institutions, through their quick-count results, gave Yudhoyono and his running mate, Boediono, an insurmountable lead over their rivals that will likely negate the need for a runoff vote in September.
Yudhoyono did not mention any figures, but the government has already pledged to boost the state of the country's roads, ports, airports, bridges, power plants, irrigation systems and other infrastructure projects.
The state budget has allocated Rp 73 trillion (US$7.1 billion) this year for various development projects.
The National Development Planning Agency (Bappenas) says the government plans to finance at least 29 percent of a total Rp 1,430 trillion in estimated infrastructure funding during the 2009-2014 period, with the shortfall targeted to come from investors, both local and overseas.
Infrastructure projects, Yudhoyono went on, were crucial not only for economic growth, but also for their labor-extensive nature, which should bode well for the government's efforts to reduce unemployment and poverty.
Even amid the global economic downturn, Indonesia's economy has so far this year fared better than most of its regional peers, with only China and India managing to book higher growth, Yudhoyono said - a fact that should bolster investor confidence on the country's economic resilience.
He said the country's unemployment rate had been on a decline, with 8.1 percent estimated for this year, down from 9.3 percent last year. The number of those living below the poverty line also declined to 32.5 million from 35 million last year.
"The solution *to reducing poverty* is job creation," the President said.
"When there's job, there's income. When there's income, poverty declines."
The Central Statistics Agency defines the poverty line as Rp 200,262 ($19.83) a month, while the World Bank defines it as less than $2 a day.
During Thursday's press conference, Yudhoyono also said the government would have a plenary Cabinet meeting next Tuesday to discuss and determine, among other things, policies and programs to be carried out until Oct. 20 this year, when the current government ends its term, and the draft of the 2010 state budget.
He added there would be reforms in state enterprises in his next term.
"We always want state-owned enterprises to benefit as much as possible the economy and the country in the form of taxes and dividends," Yudhoyono said.
