Indonesia Says Economy Probably Expanded 6.2 Percent in 2008

By Naila Firdausi, Bloomberg, January, 2009 05:57 EST

Jan. 1 (Bloomberg) -- Indonesia’s economy may have expanded 6.2 percent in 2008 from a year earlier, even as growth slowed in the second half, the Finance Ministry said. 

Inflation was 11.4 percent last year, higher than targeted, while the budget deficit was lower at 4.2 trillion rupiah ($378 million), the ministry said in a statement. 

In its latest 2008 budget, the government forecast 6.4 percent economic growth, driven by consumption and commodity exports. President Susilo Bambang Yudhoyono yesterday said Southeast Asia’s biggest economy probably expanded 6 percent. 

“Generally, economic indicators in 2008 were good although in the last few months they faced quite heavy pressure due to the global financial crisis,” the ministry said. 

To contact the reporters on this story: Naila Firdausi in Jakarta at nfirdausi@bloomberg.net

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