Indonesia sees 6.3 percent economic growth in 2007

Indonesia forecasts its economy to grow by 6.3 percent next year, President Susilo Bamabang Yudhoyono said here Wednesday.

"By considering the economic condition of international and domestic, I suggest the economic growth in 2007 is 6.3 percent," said Yudhoyono in his yearly speech at the parliament building.

He said that the country's economic growth had started to increase in the second semester this year, after indicating a trend to decline to below five percent.

The President assumed that inflation would be 6.5 percent, the central bank three months interest rate 8.5 percent, rupiah exchange rate against a U.S. dollars 9.300, oil price at 65 U.S. dollar a barrel.

He said that the government would continuously overcome the weakening of the economic growth through the policies of fiscal expansion, prolonged prudential monetary policy made by the central bank, implementation of structural policy such as economic pact for improvement investment climate, acceleration of development of infrastructure, and reform on financial sector.

The government would also put priority on the effort combating the systematic corruption, law enforcement, reform in bureaucracy, strengthening the defense and security and reconstruction and rehabilitation of provinces of Aceh, Yogyakarta and Central Java which were hit by earthquake and tsunami, he said.

Last year the country's economy grew by 5 percent, lower than 6 percent target, said Yudhoyono.

Source: Xinhua