Indonesia's President Susilo Bambang Yudhoyono said on Tuesday the government was targeting economic growth of 6.2 percent next year, driven by consumption demand and strong investment momentum. However, Yudhoyono also said in a state address to parliament that the pace would still be insufficient to slash unemployment and poverty.
The government forecast economic growth of six percent this year in its state budget.
"The target economic growth of 6.2 percent is still below the potential (of the) Indonesian economy and is indeed still insufficient to significantly reduce the level of unemployment and poverty," Yudhoyono said.
"Nevertheless, our economic growth is expected to continue to increase in the years to come, along with our success in overcoming the existing impediments," he added.
Yudhoyono's forecast is slightly higher than an analysts' estimate in a recent Reuters poll that the economy would grow by six percent next year.
He also said the government predicted the rupiah would hover around 9,400 to the dollar next year and the annual inflation rate was expected to be around seven percent.
Consumer price inflation was running at 7.84 percent in July and the rupiah was at 9,890 per dollar on Tuesday, with analysts saying it was only a matter of time before it fell through 10,000.
The rupiah has lost more than six percent of its value since the beginning of the year, due mainly to rising inflation and soaring oil prices, which have increased the dollar buying of state oil company Pertamina to finance oil imports.
In the second quarter of 2005, Indonesia posted economic growth of 5.54 percent from a year earlier, according to the country's statistics agency.
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