The government has targeted to reduce the country`s unemployment rate to 5.8-6.1 percent in 2013, from 6.32 percent - with 7.61 million unemployed people - that was recorded in February 2012, according to a minister.

"The prediction is quite realistic, assuming that our economic growth is at 6.8 to 7.2 percent, where every 1 percent growth can lead to the creation of 350,000 jobs," Manpower and Transmigration Minister Muhaimin Iskandar said here on Thursday.

He added that there would be 2.5-2.7 million new recruits in 2013, which would reduce the number of unemployed people in the country to 7.2-7.4 million.

Muhaimin expressed optimism that the target would be reached despite the European economic crisis.

"We are glad that the crisis in Europe has not affected Indonesia`s economy yet. However, the government, in anticipation of an indirect effect of the global economic downturn on the employment rate in Indonesia, has approached companies and persuaded them not to cut jobs," he said.

The minister also noted a positive development in Indonesia, with an increasing number of people working in the formal sector over the past years.

"The proportion of people working in the formal sector has reached 37.3 percent, while in the informal sector it is less than 63 percent. This is a significant development," Muhaimin said.