Indonesia to increase stimulus funds for infrastructure

Special Report:Global Financial Crisis

JAKARTA, Jan. 29 (Chinese media) -- The Indonesian government will increase stimulus funds allocated for the infrastructure sector from 6 trillion rupiahs (about 600 million U.S. dollars) to 10.2 trillion rupiahs (about 1.02 billion dollars) to afford further extension.

"Infrastructure project is not of short term, such as one year accomplishment, but there is always an extension to develop the program further," the Indonesian Sindo daily on Thursday quoted the Head for National Development Planning Board Paskah Suzetta assaying.

According to Paskah, the extension is necessary because the infrastructure sector plays an important role in bolstering the country's economy. The total stimulus funds will be used for 13 projects covering railway and road construction, flood mitigation, water cleaning, public housing and irrigation.

"We have estimated that at least 3 million workers will be absorbed for the construction works only," he said.

The funds, comprised of 6 trillion rupiahs for direct disbursement and 4.2 trillion rupiahs for indirect disbursement, will mainly go to the Public Work Ministry and Transportation Ministry, with the rest spread through other ministries including the ministries of trade, the fisheries and maritime affairs and agriculture.