IMF-WB – Indonesias debts still under small category: OECD

Nusa Dua, Bali, (ANTARA News) - The Indonesian governments debts can still be categorized as small and maintained well, according to the Organization of Economic and Cooperation Development (OECD).

OECD Secretary General Angel Gurria revealed the result of an economic survey conducted by OECD at the launch of OECD Economic Survey Indonesia 2018 as part of the International Monetary Fund and World Bank Group annual meetings at Sofitel Hotel in Nusa Dua, Bali, here on Wednesday.

"The presence of regulation on deficit has been able to curb debt growth," she said.

She said however that due to it additional spending for infrastructure development, health and social assistance has been hindered.

In view of that, Gurria said resources must be sought through efficiency and increasing income.

"The growth of civil servants salary spending has been successfully curbed in 2017 and transfer of funds to regions have improved," she said.

She said however that energy subsidy spending has now increased again after it was down in 2014-2017.

"Changing the method of distributing social assistance from conditional cash assistance to non-cash transfer will increase the target," she said.

In general, OECD has recorded Indonesias living standard continuing to improve due to strong economic expansion and good government policy, lower poverty rate and gap and wider access to public services.

OECD has also recorded strong growth of per capital income in Indonesia but unfortunately, infrastructure gap is still wide while spending for health and social assistance still need to be increased to improve inclusiveness.

"The welfare will also be better if achievement relating to environment is given more attention," she said.

She said Indonesias economic growth is predicted to remain solid at around five percent a year since 2013, driven by consumption factor and recently, by infrastructure investment which is indeed needed.

Regarding inflation, she said it would be in the middle of a 3.5 range (plus minus one percent).

IMF director Christine Lagarde has earlier said Indonesia would not need an IMF loan to deal with disaster management.

"IMF loan is not the choice because Indonesias economy does not need it," she said.

Source: ANTARA News

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