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Indonesia delays announcement of new economic stimulus package

Staff writer |
Indonesia decided to postpone announcement of a new economic stimulus package which focuses on efforts to anticipate the U.S. Federal Reserve's plan to raise rate.

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"The economic stimulus package will not be unveiled today (Friday). But the stimulus package has been prepared," Cabinet Secretary Pramono Anung said at the State Palace.

Pramono disclosed that the package included deregulation which aims at stimulating the economy in anticipating the risks of the U.S. Fed. Reserve's plan to increase its interest rate in the near future.

Besides, the package also focuses on the efforts to boost productivity and efficiency in business sector, and ease businessmen to conduct their business, he said.

Indonesian central bank estimated monthly inflation in December at 0.4 to 0.6 percent, rising from 0.21 percent in November, Agus Martowardojo, governor of the lender said here on Friday.

"Inflation may be at 0.4 to 0.6 percent at the end of December," Martowardojo said at the bank headquarters. He said that the country's plan to hold general election to elect governors, heads of district and majors across the country factors to the acceleration.

The central bank expects consumer price index at below 3 to 5 percent this year.

Indonesia's economy picks up by 4.73 percent at the third quarter after expanding at the slowest in six years in the first half year of 4.7 percent, according to the bureau, and for the whole of the year, the central bank estimates the range at 4.7 to 5.1 percent.

The lender has refrained from loosening for this year as it has kept its main rate at 7.5 percent since February on prospect of U.S. Federal Reserve's rate hike, and weakening rupiah against the U.S. dollar.

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