STATE’S INCOME GOVERNED BY GLOBAL ECONOMIC CONDITION

Global economic slowdown would undeniably affect Indonesia’s internal economic condition, it even affected state’s income in the taxation sector and investment growth. This was allegedly the reason why state’s income was hard to attain. Marketplayers were depressed by the present economic condition because national economy was more vulnerable to external sentiments. This was disclosed by member of Chairman XI of house, Henry Kurniadi when joining technical visit of Commission XI of House to the Representatives of the Ministry of Finance in Yogyakarta. This was disclosed by the Public Relations Dept of House on Monday (13/7).

Although Indonesia’s fiscal and monetary policy were all on the right track, Henry rated that it was not strong enough to face strong external challenges. An example was the Rupiah exchange rate value against USD. The effect was not only local built also worldwide. Indonesian Rupiah was not the worst: €uro was more adverse and so was Malaysia’s Ringgit.

In fact Indonesia could cope with global economic slowdown but this cycle had to be passed first. The Fed’s prediction would be better next year. But Henry reminded the Government of RI to remain cautious.

Henry reminded that the market must be developed with optimism, so foreign capital would flow in. Without investment state’s income would be hard.

Henky remarked further that state’s income from the tax sector was related with policy of the real sector. He also reminded stakeholders to refrain from sectoral ego for the sake of synergy among Government bodies. (SS)

Business News - July 22, 2015