Indonesian economy seen up 6.4 pct in 2008 on higher investment - World Bank

The Indonesian economy is expected to grow by 6.4 percent in 2008 from an estimated 6.3 percent this year, supported by higher investment and vibrant domestic demand, the World Bank said Thursday.

In its semi-annual report on the regional economies, the World Bank said investment in Indonesia is expected to rise next year with increased government spending, continued reforms and the impact of falling interest rates.

"This higher investment is expected to offset a slowdown in exports in 2008 because of slowing world demand growth due to the impact of higher oil prices, subprime debt and a US slowdown," the bank was quoted by Thomson Financial as saying.