VIVAnews - The promised fiscal stimulus for the business community from the government is starting to be questioned. The government and House of Representatives (DPR) were asked to finalize the policy so the business world can start to move with a clear direction.
"With the signing of the US economic stimulus package by President Barack Obama, the [Indonesian] Chamber of Commerce (Kadin) again pushes the government and DPR to finalize the fiscal stimulus package and the 2009 revised state budget plan (APBN-P)," said Bambang Soesatyo of the Standing Committee of Domestic Trade in a text message received by VIVAnews on Thursday Feb. 18.
Soesatyo believes that the United States economy will start to recover with a clear direction in their stimulus package. The Indonesian business community also need a clear direction from the 2009 fiscal stimulus to respond to the US economic movement.
According to Soesatyo, this pressure on the government is relevant considering the rise and fall of the national sub-sector industries which rely on the US market's absorbing capability, on products such as textile products and footwear, fish and other sea products.
The US government's high expenditure on new infrastructure development and the significant tax reduction is expected to create many new jobs and strengthen the people's purchasing power. "Therefore, several sub-sector industries in Indonesia have to take anticipatory measures starting from now assuming that the demand from the US will increase several months from now. This is why it's important for the government and DPR to finalize the 2009 fiscal stimulus," he explained.
Moreover, the 2009 fiscal stimulus contains incentives for export oriented industrial products. The incentive definitely will be added into the production calculation cost. If the 2009 fiscal stimulus is finalized and implemented, Soesatyo believes that the public and the business community will be able to immediately get to work using the clear direction from the fiscal stimulus.
"To make the incentives effective and beneficial, the 2009 fiscal stimulus needs to be supported or completed by a monetary stimulus that focuses on lowering the bank incentives," added Soesatyo.
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Translated by: Ariyantri E. Tarman
