(Insider Stories) - Indonesia government launch four policy package to strengthen domestic economic stability. Coordinating Minister for Economy Hatta Rajasa said, global economic volatility has a potency to disturb domestic macro economy and GDP's target.

For that, He said, Indonesia will create stabilition frameworks and structure reform especially in financial sectors and current account deficit. All government package will combine with Central Bank and Financial Services Authority policy.

First package, Rajasa said, will focus one how to reduces current account deficit and keep the exchange rates volatility through additional reduction target for  padat karya and export 30% of their total products, rises luxury tax up to 150% from 97.5% and other relaxation taxes.

Second package, how to maintain the  consumptions demand and reach the GDP's target by give incentive tax on several sectors. Third package, keep the inflation target and fourt package to keep investment climate like resizing the permit process, revise negatif list law, increase tax holiday and tax allowances and finalize the renegotiation contract

Government also plans to reduce debottlenecking to make food prices more stable. Rajasa said, all package has calclulate and the budget's deficit will keep at 2.3% from total GDP.

Finance Minister Chatib Basri added, to maintain domestic consumption demand and increase the export, government will give fiscal incentives especially for textile, garment, furniture and other labour intensive projects by reduce tax up to 125%, ease several luxury taxes and import book tax. With all these mix policy he estimate the current account deficit will reach under 3% of the total GDP.

For labour intensives project, said Industry Minister MS Hidayat, government coordinate with entrepreneurs and labour association will formulate the minimal wages to keep the domestic demand. Apindo's Chairman Sofyan Wanandi added, they will support government to reach the target and make action plans on the package policies.

At the cabinet meeting with economic ministers and entrepreneurs, President Susilo Bambang Yudhoyono ask all government levels and ministry together with entrepreneurs follow the directions and make a quick action to implement the packages.