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Home >> Business
UPDATED: 08:27, July 26, 2006
Indonesia's economic growth to reach 5.9 percent in second half
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Despite hitting by a series of massive natural disasters recently, Indonesia was optimistic that its economy can grow by 5.9 percent at the second half of this year, Coordinating Minister for Economy Boediono said here Tuesday.

The Minister said that Indonesia had its own prediction which is normally valid, regarding to the International Monetary Fund ( IMF) prediction of 5.2 percent this year.

"The IMF normally has its own figure, but we are always more optimistic, and normally valid. Our target could be up to 5.9," said Boediono.

He said that the growth can be driven by a good export volume, a better foreign and domestic investment and improvement in agriculture sector.

The minister also said that the impact of the disasters on the economic growth was not as significant as prediction.

"Now in Yogyakarta the economy has recovered," he said.

Nearly 6,000 people were killed in the 5.8 Richer scale earthquake in Yogyakarta province on May 27, over one and a half million people were made homeless after their houses were destroyed by the quake.

The it was followed by tsunami triggered by 6.8 Richer scale quake on July 17, killing nearly 600 people in the provinces of West Java, Central Java and Yogyakarta.

Previously, at the beginning of this year the country, which has recovered from the tsunami-hit in Aceh province in 2004 that killed over 150,000 people and destructed infrastructures in coastal areas, was also hit by flash floods in central Sulawesi, killing hundred of people.

Source: Xinhua


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