JAKARTA - INDONESIA downgraded its 2009 economic growth forecast to between 5.5 and 6.1 per cent on Monday from an earlier 6.3 per cent, the finance minister said.

The government also revised its expectation for annual inflation to seven percent year-on-year and predicted the rupiah would post an average exchange rate of around 9,500 to the dollar, Sri Mulyani Indrawati said.

The government and parliament had last month agreed to peg inflation at 6.2 per cent and the average exchange rate at 9,150 rupiah to the dollar in the 2009 budget.

Indrawati said the government would soon present the new predictions to parliament. -- AFP