Gapensi Calls For Immediate Spending By Government

Jakarta (Antara Bali) - The Indonesian Association of Construction Companies (Gapensi) has urged the government to speed up implementation of its projects to revive the flagging economy.

The new economic team of the cabinet should address the economic problem more seriously, Gapensi secretary general Andi Rukman Karumpa said.

President Joko Widsodo earlier this week reshuffled his cabinet replacing a number of key ministers especially economics ministers.

The president has said funds are available, the problem is delay in implementation.

Andi said consumption sector has been the main driving motor for the country's economic growth, therefore, utilization of the the budget fund is important .

He warned of a number of challenge threatening the country's economy including oil price hike, wider current account deficit and commodity price fall.

He said one short term steps that could cope with the problems is revival and expansion of the construction sector that needs large funding.

Official data showed that until July 31, spending by the government totaled only Rp261 trillion or 32.8 percent of the state budget of Rp795.5 trillion for 2015.

Based on data from the finance ministry, spending by a number of government agencies was less than 25 percent of the target until mid of 2015.

For example, the marine and fisheries ministry spent only Rp2.3 trillion or 21.5 percent of its Rp10.6 trillion share of the state budget and the public works and housing ministry used only Rp24.8 trillion or 20.9 percent of its Rp118.5 trillion share of the state budget.
The Transport Ministry and the Energy and Mineral Resources Ministries were lagging far behind with spending reaching only 11 percent and 10.9 percent of their respective targets.

The Rural and Backward Area Ministry had done almost nothing with its budget fund spending only 2.6 percent of its budget fund.

President Joko Widodo had asked his new coordinating minister for economy Darmin Nasution to move faster with the budget spending
The president also stressed the need to create a condition to draw foreign capital.

Darmin said the president also asked him to look into the problem with the food price hikes and scarcity and find way to cope with the impact of drought.

He said the president also attached greater importance to coordination among the ministers. (WDY)