Jakarta – Indonesia can still achieve its growth target for this year despite last week's deadly bombing at the JW Marriott Hotel in Jakarta, a senior International Monetary Fund (IMF) official said yesterday.

"We still think that growth within the range of 3.5 to 4 per cent this year, which is the government target, is achievable," Asia-Pacific senior adviser Daniel Citrin told reporters.

Some observers feared that the bombing, which killed 11 people and wounded 149, and is blamed on the Jemaah Islamiah terror group, will deter foreign investment.

But analysts said the impact of the act of terrorism on overall growth would be limited as the country's economy relies on domestic factors to drive growth. "Of course, it is still early to say, but we still think it is achievable," Mr Citrin said.

He also shared the central bank's year-end inflation forecast of between 5 and 6 per cent, compared with the initial forecast of 8 to 9 per cent. Mr Citrin heads an IMF mission that is reviewing Indonesia's economic programme.

A successful review will pave the way for the disbursement of the next instalment of IMF loans totalling around US$480 million. The IMF still has to make two disbursements to complete its five-year, US$5 billion loan before it expires in December.