The Indonesian government has predicted a lower-than-expected growth this year due to the soaring global oil prices that lead to the continued losses of the rupiah, a local newspaper said Monday.

State Minister for National Development Planning Sri Mulyani Indrawati said the full year growth target of 6 percent is now beyond the reach of the government, adding that the government renewed growth projection at 5.8 percent, reported Kompas.

The economy grew by 5.9 percent year-on-year in the first half, but the growth is predicted to slow to 5.7 percent in the second half following the central bank's move to raise benchmark interest rate to around 10 percent.

"We were optimistic at the beginning that the economy would grow by 6 percent, but we must be wary for the second half," Indrawati was quoted as saying.

Source: Xinhua