Monday, 31 August 2009

Economic Growth Better Than Initial Projection

Minister of Finance Sri Mulyani Indrawati stated that Indonesia’s economic growth in September I-2009 as released by the Board of Statistics [BPS] amounting to 4.2%, was rated as much better than the Government’s previous projection where economy was expected to grow only by 3.7%. “The economic growth of 4.2% is by far better that the prediction at the beginning of this year” Minister Mulyani remarked on Tuesday [11/8].

According to Sri Mulyani, it has been predictable that the economic growth at September I-2009 was supported by household consumption above 4%, followed by Government’s consumption which showed notably high growth. However in the heartening trend there was the investment sector which needed to be observed. The problem was, the sectors showed relatively low percentage growth compared to the same period of previous year.

Government Budget Accountable
The Minister of Finance commented that it was not sufficient that a transparent and accountable Government’s State Budget be based on good intentions, but it should be performance based. Under such circumstances, output became the main focus instead of input. “To work out a state budget, it is not enough to rely on good intentions, but the implementation should be performance-based” the Minister remarked.

The implementation of performance-based Budgeting became a criteria of effective fund utilization which was more accountable and solid. It was expected that through performance based budgeting, the difference of spending in ministries and departments could be minimized and be in accordance with the book keeping in each ministry and departments. However, performance based budgeting in each ministry and institutions was not easy to implement. Moreover, in the future the government was urged to exercise budgeting based on actual business performance according to international standard.

“Duties and responsibilities of the Finance Minister in the period of 2009-2014 would be difficult, yet many applicants were interested. The ambition to be a minister of finance should not be a matter of political power, but there had to be high aim to maintain accountable financial report. In addition to that, the system of reward and punishment in financial reporting at ministries and departments becomes homework. The fact was that presently ministries and departments already had their natural appraisals without demanding any reward” the Minister concluded.

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