Xinhua quoted Mr Susilo Bambang Yudhoyono President of Indonesia as saying that the country's economy accelerates at 6.5% at the fourth quarter of 2011, putting the overall economic growth in 2011 to 6.5%.
According to the Statistic Bureau, Indonesia's economy expanded by 6.5% in the first, second and the third quarter of 2011.
Mr Yudhoyono said that "The economic growth of 6.5% at the fourth quarter is the highest in the ASEAN."
Meanwhile, some other economic indicators in 2011 are also encouraging. The bureau reported that the inflation accelerated at 3.79 in 2011, lower than the bureau expectation of 4.5% and the central bank expectation of 4%, allowing the central bank to keep its benchmark interest rate on hold at 6% or cut it.
The bank has cut the rate by 75 basis points in September 2011 and October 2011 to 6% to shield the economy from the risk of the weakening global economy.
The president said that the deficit was at 1.27% in 2011, lower than the target of 2.09%. He added that "I want to ask all of you to make the budget this year to be better."
Mr Yudhoyono said that the government spending was 97.6% to IDR 1,289.6 trillion in 2011.
On export, the president said that it exceeded the target of USD 200 billion in 2011 as the weakening global demand on commodity had not impacted shipping of goods from Indonesia which comprised basic needs including natural resources products and plantation crops.
Nevertheless, Indonesian Trade Minister Mr Gita Wirjawan, who is also Chairman of Investment Coordinating Board, has said it is difficult to sustain the achievement in 2012.
Mr Wirjawan said that Indonesia's foreign and domestic investment last year was forecast to reach about IDR 250 trillion, higher than the initial target of IDR 240 trillion.
Meanwhile, Development Planning Agency Chairperson Mr Armida Alisyahbana said that the investment is expected to grow by 11.5% in 2012.
Mr Wirjawan said that the government aimed to achieve total investment of IDR 400 trillion to IDR 500 trillion by 2014.
Fitch's Rating Agency raised Indonesia's sovereign debt rating from BB+ to BBB- on December 15th 2011, which means the country enters to investment grade status that is going to be on the radar of global investors after loosing it for 14 years. The agency noted that Indonesia had to improve infrastructure and deepen effort in combating rampant grafts.
The country's parliament also passed the long awaited land acquisition bill into law in December to break one of bottlenecks in starting infrastructure projects.
For 2012, the central bank forecast predicts the economy was going to expand by 6.2% to 6.7% with inflation at 3.5% to 5.5%. The central bank has said it would intensify intervention on currency and bond markets for stabilization at the rest of this year and next year as its loose monetary policy and decreasing foreign ownership on the government bond, as well as its proposal to support the government plan to provide financial stimulus to contain the risk of the economic slowdown, may deeply depreciated rupiah against the dollar.
(Sourced from Xinhua)
