Indonesian President Susilo Bambang Yudhoyono said on Tuesday that the government has set up target to reduce poverty to 8 percent to 10 percent next year from 11.66 percent last year.

President Yudhoyono was optimistic to reach the target as the country had trimmed poverty from 16.58 percent in 2007 to 11.66 percent in 2012, meaning over 9 million people out of poverty.

"We are committed to keeping the progress. (With) strategy to accelerate economic growth and to create jobs and business opportunity," said Yudhoyono at Kempinski Hotel.

Still, environmental factors would be considered along with the efforts to speed up the growth, he said.

According to Indonesian central bank's forecast, the country's economy will expand by up to 6.8 percent next year after the government raised subsidized fuel prices by up to 44 percent, allowing more funds to be allocated to infrastructure by the state budget.

The government has launched a long term development plan to build massive infrastructure facilities.