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December 24, 2008 Wednesday
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Dec 24, 2008
Indonesia plans $13b spending
Workers construct a new bridge in Jakarta. Indonesia plans to spend 100 trillion rupiah ($13.3 billion) on infrastructure projects next year. -- PHOTO: REUTERS

JAKARTA - INDONESIA plans to spend 100 trillion rupiah ($13.3 billion) on infrastructure projects next year, a senior official said on Wednesday, part of government efforts to spur growth amid a global economic slowdown.

'To speed up infrastructure development in 2009, we have started the tenders. So early in 2009 we hope that there will already be construction going on,' said Bambang Susantono, a deputy to the chief economics minister, with responsibility for infrastructure.

'The total is around 100 trillion rupiah, some 70 trillion rupiah will be channeled through ministries and institutions, while 30 trillion rupiah will be transferred to the provinces,' he said.

Indonesia has been scrambling to contain market turmoil sparked by investor fears that it could become the next casualty of worldwide capital flight from risky assets.

The central bank has cut its key rate to help sustain growth in South-east Asia's top economy.

Indonesia's economy grew 6.3 per cent in 2007, the fastest pace in a decade, on the back of a commodity boom.

But the government expects growth of about 6 per cent this year, and a further slowdown next year when Indonesia is due to hold parliamentary and presidential elections. -- THOMSON REUTERS

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