Indonesian govt proposes 6.27 bln dlr stimulus package

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

Finance Minister Sri Mulyani Indrawati, who proposed the package to parliament 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 was quoted by AFP as saying.

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 percent from an earlier 6.2 percent due to declining commodity exports and lower foreign investment.

The government also raised its projected budget deficit to 2.5 percent of gross domestic product from an earlier one percent, with declining revenue leaving a bigger hole in state coffers.