Indonesia revises downward GDP growth target to 5.1 pct this year

The Indonesian government and parliament have revised down this year's economic growth target amid subdued domestic consumption and lower tax revenues.

The economic growth projection was trimmed to 5.1 percent for this year from the initial 5.3 percent, Economic Chief Minister Darmin Nasution disclosed here on Wednesday.

Indonesia's economy expanded 4.92 percent at the first three months lower than the 5.02 percent median forecast economic analysts in a Xinhua poll. Last year, the country's economy grew 4.79 percent, according to the national statistic bureau.

Finance Minister Bambang Brodjonegoro said on Wednesday that exports and investment are still difficult to rise.

The minister revealed that investment may expand 6 percent this year amid weakening global demand on the country's exported products.

"Investment and exports are still difficult (to rise). So this (revision) is made after considering global condition," he said.

The revision of this year's gross domestic growth target was made after the world bank trimmed this year's global economic-growth target to 2.4 percent from its initial target of 2.9 percent issued in January.

Indonesia is the world's largest exporter of palm oil, thermal coal, and the world's third biggest exporter of rubber and cocoa, as well as home to the world's second-biggest copper mine.

The lawmakers and the government have also decided to trim this year's inflation target to 4 percent from the previous estimate of 4.7 percent, according to Brodjonegoro. Endit