Indonesia Economy Projected to Grow 6.1%

Jakarta (ANTARA News) – Indonesia`s economy is projected to grow by around 6.1 percent in the fourth quarter to make the annual growth reach 6.0 percent, according to the finance ministry.

In its statement received here on Monday the ministry said in line with the global economic recovery and supported by various efforts that had been made by the government and Bank Indonesia, the achievement of national macro-economic indicators in 2010 had been good.

Indonesia`s economic growth until the third quarter of 2010 had reached 5.9 percent and in the fourth quarter it was expected to reach around 6.1 percent so that annually in 2010 it would reach 6.0 percent.

The rate of inflation until the end of November 2010 (year-on-year) reached 6.3 percent so that the annual inflation of 2010 is predicted to reach around 6.5 percent or higher than 5.3 percent as assumed in the 2010 revised national budget.

The high inflation rate was driven by the inflation in volatile food linked to limited supply of several food commodities such as rice and a group of various spices resulting from a seasonal pattern of scarcity.

Regarding the rate of the three-month Bank Indonesia Certificate the office predicts it would reach an average of 6.6 percent in line with the Bank Indonesia reference rate that has been maintained at 6.5 percent by the central bank.

In 2010, the rupiah exchange rate tends to strengthen until the end of the year with an average rate against the US dollar reaching Rp9.100. The appreciation of the rupiah is driven by the foreign exchange reserves that rose to US$92.76 billion until November 2010.

The price of Indonesia`s crude oil is predicted to reach an average of US$78.2 per barrel or lower than the 2010 revised budget`s average assumption of US$80 per barrel.

Oil lifting meanwhile is estimated to reach an average of 955,000 barrels a day or lower than the budget assumption of 965,000 barrels a day.(*)