Indonesia's economic growth is set to speed up during the remainder of this year, according to a World Bank study.
The bank now expects the Indonesian economy to grow 5.5% across the whole of 2006, better than the 4.6% growth seen in the first quarter of the year.
Growth has picked up thanks in part to lower interest rates and a drop in global oil prices, the bank said.
However, it warned that Jakarta should do more to tackle the growing threat of bird flu and ongoing corruption.
Indonesia, the world's fourth most populous country, has so far lost 37 people to the deadly H5N1 strain of the virus.
This is the second higher number of human fatalities from bird flu after Vietnam.
The most recent case in Indonesia was that of a 15-year-old boy in April.
The World Bank said it was concerned about Indonesia's estimated $800m (£434m) funding shortfall to prevent a pandemic of the H5N1 virus.
"There should be better planning and better financing" said World Bank economist William Wallace.
He added that the issue "is threatening Indonesia's image among investors and tourists".
The World Bank predicts Indonesia's growth rate could touch 7% in the medium term if recently announced government measures to improve infrastructure and the investment climate, and tackle corruption are effectively implemented. http://news.bbc.co.uk/2/hi/business/5071490.stm