Inflation in Indonesia is rising but the government of President Suharto has promised widespread measure to boost the economy.
LV: Traffic in streets of Chinese market in Jakarta, Indonesia
CU PAN: Fish and vegetable on display in market (2 shots)
SV AND CU: People looking at food and vegetables (4 shots)
LV: People outside large general store
SV INTERIOR: shoes being sold
LV EXTERIOR: Matahari General store in Jakarta
SV AND CU INTERIOR: Textiles being sold (2 shots)
SV: Girls buying goods and cashier cashing up (2 shots)
SV: People looking at cloth
LV EXTERIOR: Jakarta street scene
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Background: Inflation in Indonesia is rising but the government of President Suharto has promised widespread measure to boost the economy. Based on greatly increased oil revenues, more money is to be spent on agricultural projects and higher wages.
SYNOPSIS: Indonesia's cost of living rose by 1.2 percent in January (1980) and 1.4 percent in February (1980. Over the last six months prices for certain basic foods have increased by about 50 percent. The cost of rice and most fruit has risen by at least 10 percent. Only the price of coffee has remained table.
To combat inflation, the government is ploughing some of its oil profits back into the economy. Indonesia expects oil export revenues to rise by 92 percent to 6,400 billion Rupiahs (10.3 billion U.S. dollars) this year (1980). A number of the Organisation of Petroleum Exporting Countries, Indonesia produces 1.6 million barrels a day. This year's budget (1980) has been set at a record 10,500 billion Rupiah (16.9 billion U.S. dollars) an increase of 52 percent over last year. With another 1,500 billion Rupiahs expected in foreign aid, the 1980 budget is being geared to rural development.
Over two thirds of Indonesia's 130 million people live in rural villages. The new budget will arrange easy loans for small businessmen, will increase aid to rice farmers and create more schools, hospitals and jobs in rural areas. Irrigation and fertilizer schemes are a priority. In 14 provinces, new centres are being built for the breeding of livestock and another 20 hydro-electric and thermal power plants are to be constructed. The government is also more than doubling its housing budget.
President Suharto has announced salary increases of between 40 and 60 percent for civil servants and the armed forces which should stimulate the domestic consumer manufacturing industry.