VIVAnews - State Minister of National Development Planning/Head of National Development Planning Agency (Bappenas) Paskah Suzetta promised that the decrease in state revenues will be covered by foreign loans. This will be the alternative after budget surplus and state bonds issuance are considered insufficient.
In fact, Suzetta said earlier that the government will not propose foreign loans and optimize bonds issuance, budget surplus as well as standby fund.
"We must still discuss matters on the additional loans with the House of Representatives (DPR)," said Suzetta on Thursday, Jan 22.
He said that the deficit level is increased by 2.5 percent or equal to Rp 132 trillion (US$11.8 billion), taking into account the 2009 revised budget posture.
In addition, to anticipate the crisis, the government will not cut expenditures in departments/institutions and will only intensify the budget for programs which may take in more employment. "We have standby loans of US$5 billion available. We need additional sums of around US$3.5 billion," he said.
A number of institutions, he said, have agreed to disburse loans. The World Bank is among the committed institutions.
Suzetta said that the amount will be not be modified because it is in line with the assumed sums. However, the government must still ask for DPR's approval to use the fund.
Translated by: Bonardo Maulana Wahono
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