Capital spending early 2013 is expected to sustain South Kalimantan economic growth amid slump in the market of the province`s major export commodities.
Chief representative of Bank Indonesia in Kalimantan Khairil Anwar said economic recovery is expected only in the second half of 2013.
The government, therefore, is expected to increase capital spending to offset a decline in the role of exports as a growth driver, Khairil said here on Friday.
"Realization of capital spending to improve infrastructure has a high multiplier effect on the economy," he said.
Improvement of infrastructure would be followed with an improvement in the people`s welfare resulting in an increase in household consumption, which has been one of the main drivers of the country`s economic growth, he said.
Earlier at a meeting with South Kalimantan Governor Rudy Ariffin, Khairil also spoke about the need for immediate realization of capital spending to sustain the regional economic growth in 2013.
However, though exports could not be expected to recover until early next year South Kalimantan`s economy is expected to grow better than this year.
Bank Indonesia is optimistic that economic condition would improve in 2013, growing by 5.8 - 6.3 percent, he said
He said floods pose a potential problem that could contribute to an increase in inflation including in South Kalimantan late this year through early 2013.
Floods destroying crops in other provinces would also have effects on other regions including South Kalimantan, he said.
A surge in the prices of beef in Java is followed with an increase in the price of chicken meat in South Kalimantan, he cited.
Reports that the government would raise the electricity and drinking water tariffs in 2013, has also pushed up the prices, he said.
Head of the South Kalimantan financial bureau Syeh Jehan said by the end of December, realization of capital spending by the provincial administration is expected to reach 99 percent or about the same as in previous years.
"We hope that the regional legislative assembly would approve the draft budget of the province soon that auctions of projects could start early 2013," Syeh Jehan said.
The sooner the auctions are made the sooner realization of capital spending would be, he said.
COPYRIGHT © ANTARA News Kalimantan Selatan 2012
Chief representative of Bank Indonesia in Kalimantan Khairil Anwar said economic recovery is expected only in the second half of 2013.
The government, therefore, is expected to increase capital spending to offset a decline in the role of exports as a growth driver, Khairil said here on Friday.
"Realization of capital spending to improve infrastructure has a high multiplier effect on the economy," he said.
Improvement of infrastructure would be followed with an improvement in the people`s welfare resulting in an increase in household consumption, which has been one of the main drivers of the country`s economic growth, he said.
Earlier at a meeting with South Kalimantan Governor Rudy Ariffin, Khairil also spoke about the need for immediate realization of capital spending to sustain the regional economic growth in 2013.
However, though exports could not be expected to recover until early next year South Kalimantan`s economy is expected to grow better than this year.
Bank Indonesia is optimistic that economic condition would improve in 2013, growing by 5.8 - 6.3 percent, he said
He said floods pose a potential problem that could contribute to an increase in inflation including in South Kalimantan late this year through early 2013.
Floods destroying crops in other provinces would also have effects on other regions including South Kalimantan, he said.
A surge in the prices of beef in Java is followed with an increase in the price of chicken meat in South Kalimantan, he cited.
Reports that the government would raise the electricity and drinking water tariffs in 2013, has also pushed up the prices, he said.
Head of the South Kalimantan financial bureau Syeh Jehan said by the end of December, realization of capital spending by the provincial administration is expected to reach 99 percent or about the same as in previous years.
"We hope that the regional legislative assembly would approve the draft budget of the province soon that auctions of projects could start early 2013," Syeh Jehan said.
The sooner the auctions are made the sooner realization of capital spending would be, he said.
Editor : Ulul Maskuriah
COPYRIGHT © ANTARA News Kalimantan Selatan 2012