Beruflich Dokumente
Kultur Dokumente
(esatriya@ekon.go.id, satriyaeddy@gmail.com )
Deputy Assistant for Infrastructure and Regional Development
Coordinating Ministry For Economic Affairs, INDONESIA
% Change in GDP
> 7%
6-7%
6%
4-5%
Acceleration of economic
growth will need higher
3- 4 %
investment in
infrastructure.
Expected
2
Macroeconomic Stability Has Been Achieved
and Continued
Inflation Rate
17 %
7%
6.5 % With a stable macro-
economic environment and
sufficient fiscal resources,
3-4 %
the cost of finance will
correspondingly decline and
lengthen – the tenor or
maturity of loan lengthens.
2005 2006 2007 07-09
3
Fiscal Consolidation on Track and
Country Risk on The Declining Path
Budget Deficit Public Debt Ratio
75% % of GDP
Budget Deficit (% 0f GDP) Domestic
60% External
45%
2004 2005 2006 2007*
30%
15%
- 0.9 - 1.1 0%
-1.2 2003 2004 2005 2006
-1.3
Source : MoF 2006
Source: MoF, World Bank staff estimates
Budget deficit has come down considerably Public debt to GDP ratio has been falling fast
since the crisis period and has recently from about 100% GDP in 1999 to below 40%
been contained at around 1 % of GDP. of GDP by the end of 2006 and is likely to
continue falling thereafter.
4
Government Commitment on
Creating Fiscal Space For Infrastructure
Public Investment Infrastructure Expenditures
% of GDP Rp Trillions (in 2000 constant prices)
8
7.1
7 6.5
6 50 43.7
5 4.5
40 31.8 35.0
4
3
2.9 30
2 20
1
10
0
2000 2003 2005 2006 0
Source: BPS, MoF, World Bank staff estimates
2004 2005 2006*
The allocation for development spending as a
rough proxy public investment has since risen
Total amount of such spending for all levels of
noticeably. Total public investment for all levels
government has increased from Rp. 35 trillion in
of government in 2006 is expected to exceed 7%
2005 to Rp 44 trillion in 2006.
of GDP and about the same in 2007.
5
Investment Needs
Infrastructure Annual Investment Needs 2005-2010
Annual
4–5% Funding Gap
7–8% Of (Filled by
of Private Sector)
GDP Government’s ability
GDP has been limited by
Average Central budgetary constraints.
3% and Local
Of GDP Government Current economic
Budget circumstances dictate
Allocation the need to resort to
Average Annual private sector
Investment Needs Source : World Bank 2006, participation
6
DESENTRALIZATION
Reform Demands
• Democratization Improving Public Services
• Decentralization
• Good Governance
12