IMF predicts Indonesia's growth to reach 4.8% next year

The International Monetary Fund (IMF) estimated that Indonesia's economic growth would reach 4.8 percent in 2010, or below the government target initially set at 5percent, the Jakarta Globe reported in Jakarta Tuesday.

"We expect the Indonesian economy to grow by 4 percent in 2009 and 4.8 percent in 2010. We know it is below the consensus, but we still see the potential upside." Milan Zavadjil, the IMF's chief representative in Jakarta said on Monday.

According to Milan the relatively conservative expectation was not because the country's economy was weaker than thought, but it was because of the global economy condition.

Indonesia's strong domestic fundamentals should allow its economy to remain strong despite the prospects for a more sluggish global recovery than had recently been predicted, Milan added.

"The recovery in Indonesia is self-sustaining due to strong domestic demand," Milan said, adding that the 4.8 percent growth would be achieved mainly through that domestic demand.

President Susilo Bambang Yudhoyono has set a 7 percent economic growth target by 2014. He said earlier that the country needed 2,100 trillion rupiah (about 220 billion U.S. dollars) of investment per year for the next five years to be able to reach the target.

Source:Xinhua