Indonesia`s unemployment rate falls in August
"It should have been reduced to around 8 percent for August. This means it will be difficult to achieve the government target of 5.1 percent in 2009," Djimanto,
secretary general of Indonesian Employers Association (Apindo), told Reuters.
Unemployment has remained high in Indonesia because there has been little growth in the manufacturing and agricultural sectors, which together employ about half the labour force.
Despite the fall, the unemployment rate is well above the 4.7 percent at the onset of the Asian economic crisis in 1997.
Analysts say the world's fourth most populous country needs to expand its economy by at least 6 percent a year to significantly improve its employment outlook.
Yudhoyono said on Wednesday that Indonesia's economy probably expanded more than 6 percent in 2007 and may grow nearly 7 percent in 2008 thanks to higher spending and
investment in infrastructure.
The state budget targeted economic growth of 6.3 percent in 2007 and 6.8 percent in 2008.