'The projection of national economic growth in 2014 will be very much influenced by the dynamics of the global economy,' said Armida during a plenary meeting at the House of Representatives, on Monday, as quoted by Antara news agency.

According to Armida, the target is lower than the target of bringing economic growth up to the 7 to 7.7 percent the National Middle Term Development Plan (RPJMN) for 2009-2014 has set, partly due to the weakening global economy.

Therefore, she said, 2014 economic growth would still need to be supported by domestic consumption, the investment rate, and export sector performance, which was starting to improve.

On other macro economy assumptions in 2014, Armida said that the inflation rate was set at 3.5 to 5.5 percent while the rupiah exchange rate would be Rp 9.600 to Rp 9,800 per US dollar. The interest rate for three-month government debt papers would be 4.5 to 5.5 percent.

"The inflation rate is set at around 4.5 percent plus minus 1 percent to maintain the level of public consumption, and this will be backed by the supply and distribution of goods,' she said.

Meanwhile, the Indonesia Crude Price (ICP) is set at US$100 to $115 per barrel, oil lifting at 900,000-930,000 barrels per day and gas lifting at 1.25 million to 1.32 million barrels per day.

With such a macro projection, Armida said, the national deficit policy in 2014 would be set at 1.7 to 2.3 percent of gross domestic product (GDP). (fan/ebf)

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