Economic growth this year could be below the government's 6.4% target due to rising uncertainties in the global economy, Finance Minister Sri Mulyani Indrawati said Monday (17/3/08), Dow Jones reported.
"The conditions of the US economy are very serious, and are affecting the global economy as well as Indonesian economy," Mulyani said.
Indonesia expanded 6.3% in 2007, the fastest rate since the crisis a decade ago, supported by rising investment, healthy household consumption and strong exports backed by rising commodity prices globally.
Economists said the economy's significant reliance on domestic household consumption and the decline in the share of exports to the US in recent years will likely put Indonesia among the countries least affected by the deepening crisis in the US.
Much, however, will depend on the impact on the Chinese, Indian and the Asian economies, major purchasers of Indonesian commodities.