Rabu 06 Feb 2013 22:20 WIB

Ministry of Finance warns on non-oil and gas trade deficit

Rep: Mutia Ramadhani/Satya Festiani/ Red: Yeyen Rostiyani
Cargo unloading activities of imported goods at Tanjung Priuk Port in Jakarta (illustration)
Foto: Republika/Wihdan Hidayat
Cargo unloading activities of imported goods at Tanjung Priuk Port in Jakarta (illustration)

REPUBLIKA.CO.ID, JAKARTA - Ministry of Finance warns non-oil and gas trade deficit in Indonesian economy as Indonesia suffered its first ever primary balance deficit in 2012.

"It is also caused by current account deficit in 2012. The country's trade deficit almost 2.7 percent of gross domestic product (GDP)," Vice Minister of Finance, Mahendra Siregar, said on Wednesday.

Siregar mentioned that for the first time since 1961, the total trade balance of oil and gas and non-oil and gas was deficit. Indonesia could suffer non-oil and gas trade deficit if the trend remained, he warned.

He explained that to overcome the condition, Indonesia must control fuel subsidy, in line with Ministry of Finance recommendation to control the volume of fuel subsidy. The Miministry must monitor the amount of the subsidy, while government maintain the volume and encourage the initiatives from local government.

 

 

 

 

 

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