Indonesia: Economic Growth Rate at 5.5%

The Asian Development Bank has revised Indonesia's economic growth rate downward from 5.7% in its September report to 5.5%. There was no change in the expected growth rate for 2006.

The Indonesian economy recorded high growth in the first half of 2005, but the growth slowed down in the second half with the declining momentum of consumption and investment. Contributing factors are higher prices resulting from a big increase in oil and fuel prices as well as an increase in key interest rates for monetary policy.