Indonesia expects additional revenues for infrastructure

Source:Xinhua Published: 2012-10-6 15:08:42

 Indonesian Finance Minister Agus Martowardojo has said he hoped more revenue would be allocated to infrastructure spending next year following recent agreement between the House of Representatives and the government on optimization of state income, local media reported Saturday.

"Based on recent meeting results with the House, infrastructure spending could stand at more than 200 trillion rupiah (some 20.9 billion US dollars) in 2013. It could even reach around 210 trillion rupiah," Agus was quoted by the Jakarta Post as saying.

The Indonesian government initially proposed 193.8 trillion rupiah (some 20.2 billion US dollars ) of infrastructure in the 2013 state budget.

Under the current 2012 revised state budget, infrastructure spending stands at 174 trillion rupiah this year.

In the last few weeks, the government had been deliberating with the House on potential income and financing optimization. They then agreed to increase state revenues by 22.72 trillion rupiah in the 2013 state budget by raising revenue target from tax and non-tax sources.

About 50 percent of the additional funds will be used to finance routine spending needs.

Finance Ministry's fiscal agency interim head Bambang Brodjonegoro said that about 14.06 trillion rupiah of the additional funds are expected to come from tax sources and the rest from non-tax sources.

Finance Ministry budgeting directorate general Herry Purnomo said that the additional funds would be mostly utilized for capital spending needs, particularly to finance infrastructure development.

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