GOVERNMENT SETS ECONOMIC GROWTH TARGET FOR 2008 AT 6.8 PCT 

            Jakarta - The government expects the momentum of 2007 economic growth will continue in 2008, thereby it will provide a good springboard for the economy to perform better at 6.8 percent next year. 

            "In 2007 the economy was projected to expand 6.3 percent, driven among others by the investment growth of 7.3 percent and the export growth of 9.4 percent," President Susilo Bambang Yudhoyono said in a state-of-the-nation address at the parliament building on Thursday (16/08).

            The Head of State predicted that the economic stability would remain manageable in 2008 with the full-year inflation expected to reach 6.0 percent, interest on three-month Bank Indonesia certificates (SBI) 7.5 percent and the rupiah's exchange rate Rp9,100 per dollar.

            The President said the projected average price of the country's oil was US$60 per barrel and oil lifting would grow to 1.034 million barrels per day next year.

            "Based on the economic projections, the government's revenues and grants in 2008 is expected to reach the amount of Rp761.4 trillion, meanwhile total state expenditures amount to Rp836.4 trillion, thereby there will be a budget deficit of Rp75 trillion, or 1.7 percent of the Gross Domestic Product," he said.

            He said the draft 2008 state budget was prepared based on forecasts of national and global economic developments, and predicted next year conditions. Currently, the economic stability was still maintained with the estimated inflation rate of 6.5 percent until the end of 2007, he said.

            "The government concerns with the significant increase in the prices of some commodities. The rupiah's exchange rate - with the adoption of free float system, fluctuates according to fundamentals and market sentiments," he said.

            He noted that 2.4 million new jobs were created between February 2006 and February 2007, thereby reducing open unemployment rate by 9.8 percent (10.55 million people) in February 2007 from 10.4 percent (11.10 million people) in February 2006 (Antara, 16/08/07).