Jakarta - Coordinating Minister for Economic Affairs Hatta Rajasa has predicted the Indonesian economy will grow below the target of 6.8 percent set in the 2013 state budget, citing a weak global economy. "Our expectation in the 2013 state budget is 6.8 percent. But I think the growth will not be less than a range of 6.3-6.5 percent. We must be realistic," he said here on Thursday night. That the global economy has shown no signs of improvement will lower demand in developed countries and have an impact on export performance as a whole, he said. "So I think we must be optimistic about it while on the other hand, we must be careful by considering global developments," he said. He said among the efforts to maintain the growth next year are raising investment and making Indonesia a production base for the Southeast Asian market. "Signs of being a production base are already there. The growing industrial and manufacturing activities mean that the world have begun to see Indonesia as the best place to invest," he said. He predicted that domestic consumption and investment will contribute 3.2 percent each to the next year's economic growth. To maintain the growth next year the government will not issue a policy that may lead to public unrest and disturb the growth target and national economic stability, he said. He said the government will only raise power tariffs next year and is still undecided about raising the price of subsidized fuels. (*)

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