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Jakarta Post

Govt plans fiscal stimulus amid uncertainties in global economy

  • Esther Samboh

    The Jakarta Post

Jakarta   /   Fri, September 16 2011   /  08:00 am

The government plans to introduce a fiscal stimulus to spur growth in Southeast Asia’s largest economy next year as uncertainties in the global economy may drag down the country’s economy, a top official says.

“We learned in 2008 that we need to boost Indonesia’s economic growth with stimulus. In order to mitigate negative conditions that could affect Indonesia, we have to react to protect,” Finance Minister Agus Martowardojo told members of the House of Representatives’ Commission XI overseeing financial affairs on Thursday.

The United States’-led subprime mortgage crisis, which hit the world’s financial sector in late 2008, also had a severe impact on global economic growth, including in Indonesia the following year. The country’s economic growth slowed to 4.5 percent in 2009 from 6.1 percent the previous year.

To mitigate the impact of the world...