Government to delay infrastructure projects

First Vice Governor of the Bank of Indonesia Mirza Adityaswara. Medcom / Ayu.

Jakarta: The government will postpone many infrastructure projects with imported raw materials. This was said by Mirza Adityaswara, Vice Governor of the Bank of Indonesia.

He said that the effort to postpone many import projects is done to suppress the acceleration of imports and improve the trade deficit. Currently, Indonesia is experiencing a deficit in the trade balance. "The import of goods entering Indonesia is more important than the export of Indonesian goods abroad." "We are more selective to see which projects with large imports may be delayed, the acceleration of imports is somewhat limited" to Bank Indonesia Building, Jakarta, Sunday, July 29, 2018.

Mirza mentioned that the Bank Indonesia has repeatedly mentioned that the import-export deficit of goods and services last year rose to $ 17 billion. We expect this year to swell more than 25 billion US dollars.

Therefore, the government will be more selective in the construction of infrastructure although development is important to encourage the national economy. "It is true that projects are important but we can see what is the priority, those with high import levels can be delayed a bit and can be resumed later," he added.

Unfortunately, Mirza did not mention the details which infrastructure is recommended will be delayed. "Later, the government can see what are the important projects and the priorities," he concluded.

(SAW)