Indonesia targets growth of 6.2 pct in 2007

The Indonesian government said Monday it expected the economy to pick up growth to at least 6.2 percent next year with a combined policy to boost investment and non-oil export and to minimize bureaucratic red-tapes.

To achieve the targeted growth, "we need to spur growth in investment and non-oil export and cut unnecessary costs by streamlining business procedures, tax and customs laws," Minister of Finance Sri Mulyani Indrawati said in a hearing with parliament here.

Southeast Asia's largest economy grew by 5.6 percent last year and the government has targeted a growth of 5.9 percent this year.

In its report to the parliament, the government presented economic outlook for next year with inflation being put at 5 percent to 7 percent, the rupiah conversion rate at 9,000-9,200 against the U.S. dollar, assumed global oil price at 55 dollars to 58 dollars per barrel, national oil production at 1.05 million barrels per day and foreign exchange reserves at 43.8 billion dollars.

But Indrawati warned that the global growth was predicted to slow down this year and oil prices remain unpredictable.

Coordinating Minister for economic Affairs Boediono said last week the country's economic growth was likely to slow to between 4. 5 percent and 4.7 percent in the first quarter of this year, the first slowdown in four years, against 6.9 percent in the same quarter last year.

Source: Xinhua