Japan's New PM Takaichi Promises Economic Stimulus Overcome Inflation

JAKARTA - Japan's newly elected Prime Minister, Sanae Takaichi, on Tuesday said it would design a stimulus package to tackle inflation and increase cost of living.

Speaking at a press conference, Takaichi, who on the same day became the first woman to serve as prime minister of Japan, also confirmed he would not dissolve the Lower House for a flash election.

He stated that the minority government he leads will prioritize economic policy.

The 64-year-old new leader has instructed ministers and officials in his first cabinet meeting to draw up a stimulus package, according to sources familiar with this, Kyodo quoted.

As reported by ANTARA, Tuesday, October 21, he promised to "immediately" remove the temporary tariff on gasoline taxes and raise the taxless income threshold from 1.03 million yen (around Rp112.62 million), taking into account input from opposition parties.

The economic measures aim to increase people's net income and reduce household burdens, Takaichi said, stressing that he will work hard to reduce the negative impact of US President Donald Trump's high-rate policy.

Because the Liberal Democratic Party (LDP) coalition he leads with his new partner, Japan's Innovation Party, has no majority in either parliamentary assembly, Takaichi, known as a hardline conservative, invited other parties to work together for political stability.

He stated that his government was willing to accept policy proposals from the opposition 'flexiblely,' as long as it did not conflict with LDP policies.

In the diplomatic field, Takaichi said he was looking forward to a meeting with leaders of other countries in a series of ASEAN events in Malaysia this weekend, as well as the Asia-Pacific Economic Cooperation Summit (APEC) which will be held later this month in South Korea.

Takaichi, known for his firm views on diplomatic and defense issues, also stated that the government will begin drafting revisions to key security documents, including long-term policy guidelines for the National Security Strategy.