Finance Minister Sri Mulyani Indrawati (pictured) said Southeast Asia's biggest economy will benefit from the government's stimulus package, lower inflation and a stable exchange rate. -- PHOTO: AGENCE FRANCE-PRESSE
SINGAPORE - INDONESIA'S economy will grow around 5.5 per cent year-on-year in the first quarter, helped by increased government spending and lower inflation, the country's finance minister said on Tuesday.
Finance Minister Sri Mulyani Indrawati said Southeast Asia's biggest economy will benefit from the government's stimulus package, lower inflation and a stable exchange rate.
'I think it's going to provide a cushion for households in Indonesia to still maintain a quite healthy growth for this year,' Indrawati told Reuters in an interview on the sidelines of a Unicef conference.
Ms Indrawati on Monday announced plans to spend more than 72 trillion rupiah (S$9.58 billion) on infrastructure and other projects to boost growth and create jobs, and said further funds were available if needed.
Ms Indrawati reiterated the government's economic growth forecast of 5 percent for 2009 at a media briefing on Monday, down from 6.2 per cent in 2008. -- REUTERS
