UPDATE 1-Indonesia expects lower budget deficit in 2012 - CNBC

UPDATE 1-Indonesia expects lower budget deficit in 2012 - CNBC: "JAKARTA, May 20 (Reuters) - Indonesia's government expects a lower state budget deficit next year, the finance ministry said on Friday, as it tries to reduce its debt levels to win an investment grade sovereign rating and struggles to spend money to overhaul poor infrastructure. The 2012 budget deficit is forecast at 1.4 to 1.6 percent of GDP, lower than an estimated 2 percent this year, to support GDP growth forecast at 6.5 to 6.9 percent for next year, the ministry said in a 2012 budget proposal. Last year the budget deficit was 0.62 percent, far lower than a 2.1 percent projection, due to slow government spending in a country where red tape and bad infrastructure have hampered the growth potential in Southeast Asia's biggest economy. The 2012 budget deficit proposal is in line with some analyst forecasts. 'Our forecast for the 2012 budget deficit is 1.3 percent given that the government will likely underspend and revenue assumptions are on the conservative side,' said Prakriti Sofat, an analyst at Barclays Capital in Singapore."