Indonesia to see highest budget deficit, aims to boosts tourism
That will be the highest level for the central government allowed by the country's law, Finance Minister Bambang Brodjonegoro said. According to Indonesia's state treasury law, the government budget deficit could be as big as 3 percent of the GDP.
"The level of 2.7 percent of the GDP is the worst case scenario," which would occur if the tax revenue failed to reach the set target, he said.
The tax revenue might only reach 85 to 87 percent of the target of this year, the minister added. Earlier this month, a finance ministry official expected the government to run a fiscal deficit equivalent to 2.59 percent of the nation's GDP.
The Indonesian government vows to raise competitiveness of the country's tourism sector in the region, a minister said here on Thursday.
Indonesian Tourism Minister Arief Yahya disclosed the country has better competitiveness on prices, but remains weak on infrastructures.
Mr.Yahya disclosed that the government is improving infrastructures to make them at least on par with those in the neighboring countries.
"The weakness of our tourism sector is on infrastructure. Now we are boosting it," he said at Jakarta Convention Center.
Minister Yahya admitted that Thailand and Malaysia are the main competitors in attracting foreign holiday makers. ■