Rise in the Indonesian Infrastructure Budget 2008
GOI Budget 2008: Significantly increased spending on infrastructure
The government is focusing on construction of infrastructure in support of economic growth and creation of employment, given that the primary foundation for promoting economic growth will only be established with increased stock and quality of infrastructure. The increased allocations for infrastructure construction are reflected in the substantially expanded budgets for the two ministries in charge of infrastructure. The budget allocation for the Ministry of Public Works is up 41.1% to Rp 35.6 trillion and the Ministry of Communications will receive an additional 64.1% over the estimated outcome of the Revised 2007 Budget, or a total of Rp 16.2 trillion. Similarly, the Ministry of Energy and Mineral Resources will receive a Rp 5.6 trillion budget allocation.
(Source: Bank Indonesia)
Approved Budget 2008
On October 9, 2007 the Indonesia's lower house of parliament approved the government's 2008 state budget. Under the budget proposal, the government has also set a higher economic growth forecast of 6.8 percent against 6.3 percent this year. Legislators approved the government's proposed draft budget in a plenary session.
The parliament and the government agreed on the total budget revenue for 2008, which includes grants, at 781.4 trillion rupiah or 18.1 percent of GDP. Total spending was agreed at 854.7 trillion rupiah, resulting in a budget deficit of 73.3 triliion rupiah or 1.7 percent of GDP.
"The government is optimistic the 2008 economic growth (forecast) will be achieved, supported by an expected improvement in consumer spending and higher investment in line with the improving investment climate," Finance Minister Sri Mulyani Indrawati was quoted by Thomson Financial as saying during the plenary session.