JAKARTA: Amidst the ongoing domestic political saga, Bank Indonesia yesterday raised its economic growth projection to between 6.3% and 6.8%, from an earlier forecast of 6.1%-6.6%, attributing the rosier outlook to the rising exports and investment.Besides the solid exports and rising investment, household consumption has also displayed strength, Bank Indonesia Governor Darmin Nasution said in a press briefing after the central bank's monthly meeting that is among others to decide its interest rate policy.In the third quarter of 2011, economic growth is estimated to grow in the high level of 6.6%, backed by consumption and investment.Although such projection is progressive, yet it is somehow still in line with 2011 economic growth corridor, which is at 6.5% as stated in the revised 2011 state budget. An earlier forecast was 6.4%.According to Darmin, all economic sectors are projected to record favorable growth. Transportation and communication, trade, hotel and restaurants, and industrial sectors are expected to be the main drivers.Bank Indonesia Deputy Governor Budi Mulya said that such projection had just been revised in the Board of Governors' meeting, triggered by rising export and investment.The highlight of this months board of governors' meeting is the revised economic projection from 6.1%-6.5% to 6.3%-6.8%, he said.The government has raised export target to US$200 billion from US$168 billion. Such rising target is in line with the high trading data, referring to the Central Bureau of Statistic, amounting to US$80.28 billion or soaring by 33.37% compared to the earlier period. (Bisnis 12 July 2011).Private consumption and investmentHead Economist of Danareksa Research Institute Purbaya Yudhi Sadewa said that Indonesia's economy will potentially grow up to 6.5% this year although it will not significantly backed by state expenditure.Household consumption, export, and investment will still continue their positive growth in the second half this year and significantly contribute to the economic growth, he added.I project household consumption to grow by 5% while export and investment may book a double digit growth, he said, pointing out that the government spending on projects however is expected to continue to be slow.Fiscal support towards our economy is yet to recover, but possibly not as strong as it is used to be. It will affect consumption, export and investment. If these grow better, the growth may reach 6.5% or 6.7%, he said. (01/Agust Supriadi)(t02/msw)

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