JAKARTA - Indonesia hopes the central bank interest rate will reach to single digit in 2007 to facilitate economic activities, the central bank governor Burhanuddin Abdullah said here on Monday. "If the trend is improved, hopefully the single digit interest rate can be achieved," he said. He said that if Indonesia could maintain inflation rate below 7 percent, the interest rate could be 10 percent.
Indonesia targets inflation of 6.5 percent in 2007, lower than 8.0 percent in 2006. Indonesian President Susilo Bambang Yudhoyono has targetted of an average of above 6 percent economic growth during his five years term. He was nearly two years on tenure. The country has targetted economic growth of 6.3 percent in 2007.