The Indonesian government was optimistic that inflation rate this year can reach the target of 6. 5 percent, Finance Minister Sri Mulyani said in Jakarta Thursday.

"For the entire year of 2007, we are optimistic the inflation will be around 6.5 percent," she told reporters at the State Palace.

The trend of inflation by December last year to 6.6 percent and 9.50 percent interest rate of the central bank of the Bank of Indonesia were among those used for the basis of the estimation, the mister said.

The central bank cut by 25 basis point of the interest rate on Thursday to 9.50 percent, the previous cut was 50 basis point.

On Tuesday Indonesian President Susilo Bambang Yudhoyono called for lower interest rates to help beef up economic growth this year of more than 6 percent to reduce unemployment.

Source: Xinhua