Mr Sri Mulyani Indrawati told an investor conference the economy would likely grow between 4.5 per cent and five percent next year, well below the budget target of 6.3 per cent.

The minister said year-on-year growth could come in below six per cent during the fourth quarter of this year from 6.11 per cent in the third. For the entire year, the economy could expand by 6.2 per cent.

The government will provide tax relief worth an estimated 12.5 trillion (S$1.51 billion) next year to help businesses, she said, without providing details.

The minister also forecast the rupiah, which has recently sunk to 10-year lows of around 12,500 to the dollar, to average 9,675 against the greenback this year. -- AFP