May 28, 2014

The economic difficulties upon on the Indonesia's future president

Today in Jakarta Post, an economist wrote about what kind of economic difficulties need to resolved by the future Indonesian President


The economic landscape post-presidential election | The Jakarta Post

Amid slowing economic growth, higher budget deficit and increased exposure to external debt, the future of the domestic political landscape is showing some distressing signs.
After taking office, whoever becomes president will face the immediate problem of saving the 2015 state budget from surging fuel subsidies. This year the fuel subsidies would exceed the 2014 budget by Rp 74 trillion (US$6.4 billion), a third more than the budget. The subsidy is flowing like uncontrolled flood jeopardizing the sustainability of the economy at a time when tax revenue growth is declining. It has to be reined in.


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