Indonesian economy seen further signs of decline

Indonesia, the largest economy in Southeast Asia, is coming under increasing strain from the financial crisis with new projections showing plummeting exports and slowing growth.

Bank Indonesia Deputy Chief Hartadi Sarwono said Thursday economic growth may slow to below 4 percent in 2009, down from 6.1 percent last year, due largely to declining exports.

Exports could contract by up to 28 percent annually in 2009, he said, after falling more than 30 percent in January.

Indonesia is a major exporter of coal, gold, palm oil, rubber and other precious metals. It also manufacturers textiles, shoes, electronics, automobiles and motorcycles.

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