Indonesia expects 2012 budget deficit at 1.4 pct of GDP

JAKARTA May 20 (Reuters) - Indonesia's finance ministry said on Friday the country's budget deficit next year was expected to reach 1.4 percent of GDP and economic growth was estimated at 6.5 to 6.9 percent in 2012.

The ministry's state budget proposal set a 2012 inflation target at between 3.5 and 5.5 percent and the rupiah at between 9,000 and 9,300 per U.S. dollar, according to a speech prepared for parliament.

It also raised the forecast for 2011 GDP growth to 6.5 percent, from 6.4 percent, and estimated 2011 full-year inflation at around 6 percent. (Reporting by Adriana Nina Kusuma; Editing by Neil Chatterjee)