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Indonesia 99/00 GDP growth seen at 1.5 pct-finmin

JAKARTA: Indonesia's GDP is estimated to have grown 1.5 percent during the fiscal year ending March 31, Finance Minister Bambang Sudibyo said on Monday.

He cited better political, social and economic conditions as the reasons.

It had previously been forecast at zero percent.

Speaking to parliament on Monday, Finance Minister Bambang Sudibyo also said that inflation for the same period is estimated at minus 0.5 percent, much lower than the earlier forecast of 17.4 percent.

Indonesia's inflation in 1999 was 2.01 percent, while GDP growth in 1999 was 0.23 percent.

"Despite instabilities in several areas, overall social and political condition is relatively conducive for positive economic growth," Sudibyo told parliament.

Other basic assumptions used in the 1999/2000 state budget have also changed.

The rupiah exchange rate is now seen at 7,454 to the dollar by the end of March, slightly stronger than the previous estimate of 7,500 to the dollar.

The average oil price is estimated at $19.67 per barrel, also higher than the previous forecast of $10.5 per barrel, thanks to stronger global oil prices. -Reuters