Indonesian govt proposes $6.27 bn stimulus package

JAKARTA: The Indonesian government has proposed a stimulus package amounting to 71.3 trillion rupiah ($6.27 billion) as a buffer against the global economic slump, a minister said on Wednesday.

Finance Minister Sri Mulyani Indrawati, who proposed the package to parliament on Tuesday, said the plan offered a mix of government spending, tax breaks and incentives to boost economic output and create jobs.

"The stimulus is all about reducing fees that have been imposed, easing the burden of doing business and providing additional budget expenditure," Indrawati said.

The parliament has yet to approve the stimulus package.

Indonesia's government has pared back its 2009 growth forecasts to between 4.5 and 5.5 per cent from an earlier 6.2 per cent due to declining commodity exports and lower foreign investment.