2011 Still "Haunted" Global Crisis

Finance Minister Sri Mulyani said, the preparation of the Macroeconomic Framework and the Principles of Fiscal Policy at the upcoming 2011 budget year is affected by the current situation in the global economy.

Assessed the global economy is still in the recovery process due to financial crisis the world is very heavy in the year 2008. Despite signs of improvements have occurred, emphasized vigilance must be maintained.

"The economy of the United States, Japan, China and India show signs of recovery and better performance. In the United States, is marked by the increasing production capacity, strengthening consumption and purchasing power of households," said Sri Mulyani, while representing the Government in the description above Macroeconomic Framework and the Principles of Fiscal Year 2011 Fiscal Policy, in the Plenary Session of the Parliament, on Thursday (20/05/2010).

Sri added, although the overall performance of the world economy continues to show a signal improved, but the world economic situation is still fragile and it can be said is full of uncertainties. Current world economic recovery is sustained by the global liquidity supply through the intervention of a very expansive monetary policy and a counter cyclical fiscal policy massively in all countries.

In addition, the threat of global side also came from the emergence of economic crises in Europe due to the expansionary fiscal policy with the level of a very high budget deficit and the long term. "Countries such as Portugal, Italy, Spain, Ireland, and Greece is exposed to extremely severe fiscal situation with the government's debt ratios well above the agreed maximum is 60 percent," he said.

The situation in Europe will potentially cause a widespread financial crisis as a result of systemic impact of declining confidence, weakening the euro currency and the fall of the price of government securities that potentially affect the financial health of the banking sector.

Therefore, said Sri Mulyani Indrawati, Indonesia must continue menjagar to economic policy have been prepared with a combination of prudence in which the instrument is intended to maintain macroeconomic balance and long-term economic stability.

"The combination of signs of recovery and uncertainty in Europe this will be the economic challenges ahead in formulating fiscal year 2011," said Sri Mulyani, who will end his post this afternoon.

Preparation of Macro Economic Framework and the Principles of Fiscal Year 2011 Fiscal Policy is a reference as well as initial basis for the Government in preparing the Draft Budget 2011. Broadly speaking, Macroeconomic Framework and the Principles of the Fiscal Policy of 2011 contains three major factors of economic performance in 2009 and projections in the year 2010, and targets of macroeconomic challenges in 2011, and the points fiskan policy in 2011.