INDONESIA HANDLED FINANCES VERY WELL

Cannes, France, Nov 3 (ANARA) - Indonesia is considered to have managed its finances very well enabling it to minimize the impact of the current global financial crisis, Finance Minister Agus Martowardojo said. Speaking at a press conference along with a number of ministers on the sidelines of the G-20 Summit here on Wednesday night local time or at 3am West Indonesia Time on Thursday, Agus said the view was put in the draft G-20 Communique and Action Plan which would become the basis for the declaration to be issued at the end of the summit after being discussed by G-20 leaders. "If the communique and action plan were issued the results of G-20 member countries` monitoring would be seen. There are six countries that are viewed as having strong finance namely Indonesia, Germany, Australia, Canada, China and Japan. We are included as one of the countries that has sound finance," he said. In initial discussions among finance ministers of G-20 ahead of the summit Agus said countries that were viewed as financially strong were expected not to conduct fiscal consolidation overly but if possible to even give stimulus in various forms to the region or other countries. "In view of that we have prepared ourselves. Based on the 2008-2009 (crisis) we will conduct an expansion. We will maintain our economy through expansion. This could only be done by making our private enterprises rise," he said. He said in 2011 there is a revised budget that will encourage extension of stimulus. In 2012 a (budget) agreement has been reached and if necessary revision could be done with more programs included with the provision of stimulus. "Fiscal consolidation that we have been doing is maintaining deficit so that it will not become too big and managing the debt ratio. The other thing is conducting structural reform among others by making improvements in the fields of manpower, social security and regulatory reform. Indonesia has given a good emphasis on the two areas," he said. Coordinating minister for economic affairs Hatta Rajasa meanwhile said on the occasion that the results of the summit have been waited for by the international community and it was expected a positive declaration would come out to handle the financial crisis in Europe and boost economic growth in other reginos. "The Cannes Declaration is waited for by the world, among others regarding the solution of the problem in Greece. President Susilo Bambang Yudhoyono has given directives for us in Indonesia to take anticipatory measures by maintaining the momentum of growth and preparing steps that would be taken if the impact of the crisis reaches the country," he said. He said Indonesia however hopes the G-20 would not only settle the crisis but would also push development process and sustainable and balanced global economic growth. Minister Agus said besides promoting national interests Indonesia in the G-20 summit would also voice the interests of the Association of Southeast Asian Nations (ASEAN) member countries. He said with regard to the crisis in Europe, Indonesia and ASEAN hoped that a number of organizations or multilateral cooperations in the economic fields would not only focus on Europe but also on other regions whose economies are just growing. Hatta Rajasa said there was an important pillar in every cooperation in ASEAN namely that member countries while creating economic growth and jobs they also prevent development inequality. President Yudhoyono arrived at Cannes at 6.30pm local time on Wednesday or at 11.30pm West Indonesia Time. President Yudhoyono, Indian President Manmohan Singh and South Korean president Lee Myung Bak stayed at the same hotel. Upon arrival at Cannes President Yudhoyono immediately held a meeting with a number of ministers dealing with economic affairs to discuss again the agenda that would be brought to the summit that would be officially opened at 12.30 local time on Thursday or 7.30pm West Indonesia Time. Ministers who joined the President`s entourage are Hatta Rajasa, Agus Martowardojo, minister of tourism and creative industry and deputy finance minister Mahendra Siregar who acts as a laison officer in the preparations for the G-20 Summit.