INFRASTRUCTURE BUDGET INCREASED BY RP11.9 TRILLION

Jakarta, April 10 (ANTARA) - Finance Minister Sri Mulyani Indrawati said the budget for infrastructure development in 2010 has been increased by up to Rp11.9 trillion.

"The infrastructure budget in 2010 is up from Rp93.7 trillion to Rp105.6 trillion with the possibility for it to be increased again next year," she said when exposing changes in the 2010 national budget at a meeting with the House of Representatives Budget Committee at the parliament building here on Friday.

She said the budget would be used to finish the developement of Kualanamu airport in North Sumatra and the development of trans-Sumatra, Java, Bali, Kalimantan, Sulawesi, West Nusa Tenggara, East Nusa Tenggara and Papua.

She said the budget would also be used for preserving and improving the capacity of national roads and bridges as well as rural means and facilities.

The minister also explained about additional budgets for urgent projects such as for rehabilitation and reconstruction in quake-hit regions of West Sumatra and West Java totalling Rp3 trillion, revitalization of sugar plants worth Rp300 billion and for Aceh Integration Fund worth Rp200 billion.

"There is also the budget for paying the debts of the ministry of defense worth Rp5 trillion, reserve funding for East Canal Flood Control worth Rp500 billion, Ciliwung river rerouting worth Rp100 billion and further support funding for Coral Triangle Intitiative worth Rp50 billion," she said.

She said the main fiscal policy for 2010 would also be focussed on price stabilization program, acceleration of the implementation of national development priorities which are in line with Presidential Instruction Number 1 of 2010 on the acceleration of 2010 development priorities.

She said other additional priority funding include that for post-natural disaster cost, acceleration of infrastructure development and empowerment of small and medium enterprises.

In the framework of accelerating prioritized and mid-term national development programs in 2010 the government would increase the budget deficit from 1.6 percent earlier or Rp98 trillion to 2.1 percent or Rp129.8 trillion.

"The budget deficit will be increased to anticipate changes in the macro indicators and to maintain price stability," she said.