Indonesia's president, Susilo Bambang Yudhoyono, gave an annual state of the nation speech in parliament on Monday... the day before the country celebrates its 65th independence day.

Southeast Asia's largest economy is seeing solid growth combined with increased political stability... attracting strong foreign capital inflows to its bonds and stock market.

[Susilo Bambang Yudhoyono, Indonesian President]:
"In 2014, the government is targeting economic growth of 7 to 7.7 percent. Through good planning and correct implementation, we are optimistic we can reach the target."

Yudhoyono says Indonesia's population has grown by about eight percent to 237.6 million in the last decade.

Yudhoyono says he is committed to tackle graft and implement bureaucratic reform and good governance.

But so far his second term government has passed only a handful of bills, none of which address those issues.

[Susilo Bambang Yudhoyono, Indonesian President]:
"In the next four years, we are targeting the creation of 10.7 million new jobs, as well as reducing the poverty level to around 8 - 10 percent by the end of 2014."

The speech drew a lukewarm response from parliament.

[Gayus Lumbuun, Democratic Party of Struggle]:
"There's nothing new in his speech, the President only talked about the state budget and national stability."

[Nudirman Munir, Golkar Party]:
"When the president mentioned a legal mafia, we need further explanation of that."

Poverty remains a huge challenge for Indonesia due to little growth in agriculture and manufacturing, which together employ about half the total labor force in the country.

A large number of Indonesians also do not have access to higher education, making it difficult for them to access formal jobs. Many remote areas are not touched by proper infrastructure needed to develop the economy.