Indonesian economy is predicted to grow by 6.8 percent to 7.2 percent next year, spurred by investment and consumption, Coordinating Minister for Economy Hatta Rajasa said here on Thursday.
Hatta Rajasa said that investment would contribute to the growth by 3.03 percent to 3.13 percent, followed by household consumption by 2.62 percent to 2..85 percent.
Previously the government forecast the economy to grow by 6.7 percent to 7 percent next year, according to Hatta.
The central bank on Thursday kept the key interest rate unchanged at 5.75 percent for the third straight month to help spur economic growth as inflation pressure persists.
The bank cut the basic rate by 25 basis points in February and 50 basis points at the end of last year.
Indonesia foreign direct investment rose by 30.3 percent to 51. 5 trillion rupiah (some 5.6 billion U.S. dollar) in the first quarter year on year following the second credit rating upgrade to investment grade by Moody's on Jan. 18, Gita Wirjawan, chairman of the country's investment coordinating board has said.
Indonesia is targeting 206.8 trillion rupiah (some 22.43 billion U.S. dollar) in foreign direct investment this year, 18 percent higher than that of last year, he has said./.