RI ECONOMY PREDICTED TO GROW ONLY 4.3 PCT

Jakarta, June 17 (ANTARA) - Indonesia predicts its economy will only grow around 4.3 percent in 2009, below the target of 6.0 percent set in the national budget.

"It is lower than it had been for the past several years when it used to be above six percent. However it is still quite high compared to that of other countries as many of them recorded a negative growth," the country's finance minister Sri Mulyani Indrawati said here on Tuesday.

She said the country's economic growth began to slow down at the end of 2008. The country entered into a recession in 2009 with its recovery expected to begin in 2010.

In April 2009 the world's economy was predicted to grow minus 1.3 percent. Most countries in the world suffered negative growth such as the US at minus 2.8 percent, Europe at minus 4.2 percent and Japan minus 6.2 percent.

Regarding predictions on the realization of other economic assumptions she said the country's gross domestic product would reach Rp5,232.8 trillion compared to Rp5,327.5 trillion set in the 2009 budget while inflation would reach 5.0 percent compared to 6.2 percent set in the budget.

The rupiah exchange rate meanwhile is predicted to reach Rp10,600 against the US dollar compared to Rp9,400 while the three-month Bank Indonesia Certificates at 7.5 percent, crude price at US$61 per barrel and oil lifting at 960,000 barrels a day.

On macro-economic assumptions for 2010 Sri Mulyani said based on the agreement made with the House Budget Commitee some time ago the country's economy is assumed to grow between 5.0 and 6.0 percent.

Inflation meanwnile is assumed to reach 4.0 to 6.0 percent, three-month SBI at 6.0 to 7.5 percent, rupiah exchange rate at Rp9,500 to Rp10,500 per US dollar, crude price at US$50 to US$70 per barrel and oil lifting at 960,000 barrels a day.

The economic growth of 5.0 to 6.0 percent will be driven by growth in household consumptions reaching 4.2 to 4.8 percent, government consumptions 6.0 to 6.7 percent, investment 7.1 to 7.6 percent, exports 5.0 to 7.0 percent and imports 6.1 to 6.8 percent.

"The economic growth in 2010 may continue, supported mainly by consumptions and investment," she said.

Improvement in the economic condition in 2010 is expected to alleviate poverty to 12 to 13.5 percent from around 12 to 14 percent in 2009.

"It is also expected to reduce unemployment to eight percent from around 8.3 to 8.6 percent in 2009," she said.