Growth Stunted by Low Capex Use
10 September 2014 15:06 WIB
TEMPO.CO, Jakarta - Achsanul Qosasi, House of Representatives' (DPR) finance committee member, said the low absorption of capital expenditure in ministries and state agencies will hamper Indonesia's economic growth. As a result, the real sector, exports performances and employment will decline.
"Just calculate (how much will be lost) if every Rp10 trillion of capex absorption can boost economic growth by 0.1 percent," he told Tempo yesterday.
His statement is a response to the actual absorption of the 2014 State Budget Amendment per July 25, 2014, which amounted to Rp886.86 trillion, or just 47.3 percent of the capex total. The absorption is lower than in the same period last year, where capex use reached 48.6 percent or the Rp839.06 trillion allotted.
As of July this year, Indonesia noted a budget deficit of Rp66 trillion, or 27.3 percent of the ceiling in the state budget. In the same period last year, the deficit stood at Rp96.13 trillion, or 42.9 percent of 2013 Amended State Budget ceiling.
AISHA SHAIDRA
