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BI, IMF say infrastructure financing can overcome development problems
Bank Indonesia (BI) and the International Monetary Fund (IMF) have said infrastructure development financing can solve development problems and that this is one of the keys for sustainable economic development
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ank Indonesia (BI) and the International Monetary Fund (IMF) have said infrastructure development financing can solve development problems and that this is one of the keys for sustainable economic development.
BI Governor Agus Martowardojo said the Indonesian government was committed to developing infrastructure and connectivity among regions.
He said infrastructure and regional connectivity development needed a large amount of financing and the government had striven to accelerate it by, among others things, reducing fuel subsidies and establishing private-public partnership (PPP) schemes.
Reducing fuel subsidies could give the government adequate fiscal room to carry out infrastructure and connectivity development, he added.
'One economic challenge Indonesia is facing is the difficulty obtaining financing facilities to help tackle infrastructure gaps,' Agus said as quoted by Antara in an international conference in Jakarta on Wednesday.
He said deepening Indonesia's finance market and creating an inclusive financial system were also important to maintaining the country's economic stability and pushing forward more inclusive economic growth.
'It is hoped that today's conference can give us input, contributions and solutions to those problems,' said Agus.
IMF managing director Christine Lagarde praised Indonesia for its effort to maintain its economic stability in the midst of a global economic condition that was full of uncertainties.
'An economic policy must be adjusted to the needs of every country. This cannot be generalized,' she said.
However, Lagarde said, there were five things countries needed to maintain in the current economic condition. First, she said, governments must strengthen their fiscal policies.
'Credit growth must be controlled so that it will not be too excessive. The fluctuation of the exchange rate must be maintained as well,' she said.
Lagarde further said countries must maintain the adequacy of their foreign exchange reserves while at the same time they must develop solid financial sector oversight and management. (ebf)(++++)
