indonesianembassy

Aditya Suharmoko ,  The Jakarta Post ,  Jakarta   |  Mon, 11/02/2009 2:14 PM  |  Business

The International Monetary Fund (IMF) considers the 2010 budget deficit sufficient for Indonesia to spur economic growth as the economy recovers from the global economic crisis.

IMF Senior Resident Representative Milan Zavadjil told reporters Monday the 1.6 percent deficit seemed to be "appropriate" considering the country was less dependent on trade.

The government has reduced the deficit from 2.5 percent of the gross domestic product (GDP) in 2009 to 1.6 percent as the economy moves toward recovery.

Zavadjil said the deficit would be enough if it was mostly allocated to fund infrastructure projects highly needed to boost economic growth.