The government forecasts that the country’s economic growth in 2013 may reach between 6.7 and 7.4 percent, mainly driven by growing investment and an expanding budget for infrastructure.

Coordinating Economic Minister Hatta Rajasa said on the draft of the 2013 state budget, which is currently under discussion, the government had boosted its expenditure budget to Rp 541 trillion, a 6 percent increase from Rp 510 trillion in the 2012 state budget.

“Together with an increased expenditure budget and rising investment, we hope that exports in 2013 will also increase, or remain stable, despite slow progress in global economic recovery. Domestic consumption is also predicted to remain strong,” he told reporters after attending a Cabinet meeting at the Presidential Palace in Jakarta on Wednesday.

In 2013, the government expects that inflation will stand between 3.5 and 5 percent.

National Planning Minister Armida Alisjahbana revealed that of the Rp 541 trillion allocated in 2013, Rp 164.7 trillion would be used for operational expenditure, such as paying civil servant salaries, and Rp 180.2 trillion for capital expenditure (up from Rp 148 trillion in 2012), including infrastructure development.