The Macro Economic Framework, Basic Fiscal Policies and Government Working Plan 2012 or RKP 2012 has served as the base of the Indonesia budget 2012. It is estimated that in the upcoming fiscal the major developed economies will see a slowdown in their economic growth.
Countries like the US, Germany, Japan and the UK are supposed to be mostly affected due to slow economic growth and all these possibilities have been factored in while drafting the 2012 budget. Asia�s economy is expected to see less economic growth as well but it will still perform the best on a global basis, headed by India and China as the driving forces.
The global economy is facing some serious problems in the upcoming fiscal:
Financial crisis across Europe
Fiscal crisis in the US
Economic problems in China and India such as inflation
The Indonesian national administration has kept these factors in mind while formulating the 2012 budget and tried to make sure that the national economic growth and performance are not hampered by these conditions.
Indonesia Budget 2012 Highlights and Possible Impact:
The 2012 Indonesia budget has considered the opinions and suggestions provided by the House of Representatives. The budgetary considerations of the Regional Representatives Council that were provided through the Preliminary Deliberations Forum.
The 2012 budget also accounts for the economic developments within Indonesia as well as outside it. It has also considered the medium term goals that were mentioned at the Medium-Term National Development Program, or RPJNM, that is effective from 2010 to 2014.
It is estimated that in 2012 fiscal the national economy will grow by 6.7 percent.
Through the 2012 budget the government will give top priority to keep the economy stable and focus on public welfare. This decision is expected to help the Asian country restrain the inflation that has resulted from increasing global commodity prices. Certain provinces have also been hit hard due to weather extremities of late and this has pushed up the inflation rate as well.
The government is cooperating with the Bank Indonesia regarding the purchase of government bonds. This will help the administration deal effectively with the negative effects of a world economic crisis as well as capital inflow reversal. It is also expected that these steps will portray a positive picture about the safety and present health of Indonesian economy.
In 2012 the inflation rate will be 5.3 percent and the quarterly interest rates of the State Treasury Bills have been pegged at 6.5%.
The government is also expected to bring down the number of unemployed people in Indonesia to within 6.4 and 6.6% of the overall population. As far as the poor inhabitants are concerned this rate is expected to come down to 10.5-11.5 percent in the upcoming fiscal.
Indonesia Budget 2012 � Expectations:
The estimated economic growth for the 2012 fiscal is the best after 1998 fiscal and this has been possible due to investments, public consumption and exports. Sectors like the processing industries, mining and agriculture are supposed to play a major part in ensuring Indonesia�s economic growth in the upcoming fiscal.
Indonesia�s economy has been performing well of late and its growth has contributed to newer job opportunities � the government has also successfully brought down the unemployment rate. It is expected that the 2012 budget will continue that trend.