Indonesian central bank optimistic on 2007 economic growth

Indonesia's economic growth target of 6-7 percent for 2007 will be achieved if the inflation rate is kept down and national productivity can be raised, deputy governor of Bank Indonesia (BI), the central bank of the country, said Friday.

"If we can cut inflation and raise exports further, we will be able to achieve the economic growth rate of 6-7 percent next year, " Antara news agency quoted BI Deputy Governor Aslim Tadjudin as saying here on Friday.

The 2007 economic growth rate would also depend on the commitment of all parties, including the banking industry to spur the real sector as one of the engines of economic growth, he said.

The Indonesian economy remained stable throughout this year, marked by a downward trend in the inflation rate and the rupiah's stable exchange rate, he said.

The economic stability in 2006 would be a key to achieving economic growth in the years ahead, he said.

"Hopefully, the macro economic stability attained in 2006 can be maintained. So this will be a good momentum to speed up economic growth in 2007 and 2008," he said.

The Central Bureau of Statistics (BPS) announced early this month inflation in November was 0.34 percent, bringing year-on- year inflation to 5.27 percent and calendar year inflation to 5.32 percent.

Source: Xinhua