The Jakarta Post
The government is preparing a regulation to curb luxury goods imports in a bid to reduce the current account deficit, and at the same time maintain the people's purchasing power.
'One way to stimulate the weakening economy is by preventing people's purchasing power from decreasing, and at the same time by reducing import spending. Therefore, we will restrict the luxury goods imports,' Vice President Jusuf Kalla said in New York on Thursday, as quoted by Antara.
Indonesia's slowing economy, he added, resulted from Indonesia's economic structure, which mostly depended on exports, such as coal. Thus, the weakening global economy heavily affected the domestic economy.
Kalla further said that the global economy is in trouble as some countries are facing excessive financial problems. The United States spent a great deal to fund its wars in several countries, such as Iraq. European countries, on the other hand, spent a great deal of money on their social security programs, which lead to a deficit. Meanwhile, China invested too much to reach double-digit economic growth. (edn/ads)(++++)
Your premium period will expire in 0 day(s)close x