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JAKARTA (AFP): Indonesia's economy is seen growing between 4.0 and 5.0 percent in 2004 against the estimated four percent for 2003, Bank Indonesia (BI) governor Burhanuddin Abdullah said Thursday.

The higher growth estimate for 2004 was based on projected increases in private consumption, exports and investment, Abdullah told a news briefing here.

He said exports are projected to grow 2.5-3.5 percent in 2004 while domestic private consumption, which makes up about 70 percent of Indonesia's gross domestic product (GDP,) is predicted to grow by 4.2-5.2 percent.

Investment is expected to grow by 1.6-2.6 percent, he added.

Abdullah said that other indicators are seen remaining stable this year.

The average rupiah exchange rate is forecast to stay within a range of 8,200-8,700 against the dollar, compared with a government forecast of 8,600, while inflation is seen at 5.0-6.0 percent against the government forecast of 6.5 percent.

Foreign exchange reserves are projected to remain at a level of about 33.3 billion dollars compared with the current 36 billion dollars, Abdullah said.

Such an amount would be sufficient to finance imports and government debt repayment for six months, he said. "Bank Indonesia policies will be directed to maintain monetary stability as part of the efforts to keep macro economic stability," he said.