Indonesia is challenged to end the slowdown of economic growth this year, Finance Minister Sri Mulyani said Wednesday.

Talking to reporters after a regular cabinet meeting at the State Palace, Mulyani said that the government would be careful in issuing new policy in the first quarter this year, as the growth was still unstable.

"The challenge in 2006 is to stop the slowdown and to revise the growth in the future," she said.

The government has targeted 5.6 percent economic growth this year.

"In the first quarter this year, it must be careful (in issuing policy). The challenges are very difficult," she said.

Indonesia's economic growth slowed to 4.9 percent in the fourth quarter last year.

The government policy of doubling oil price in October last year caused inflation to rise to about 18 percent.

The policy was followed by providing 100,000 rupiah (some 10 US dollars) funds for each poor people.

Indonesian economic growth rose to 5.6 percent last year from 5. 1 percent in 2004, according to the Indonesian Statistic Bureau.

Source: Xinhua