Indrawati Projects 5% Economic Growth for Indonesia in 2025 Amid Global Uncertainty
Jakarta, The Gulf Observer: Finance Minister Sri Mulyani Indrawati on Tuesday projected that Indonesia’s economy will grow by approximately 5 percent in 2025, slightly below the 5.2 percent target outlined in the 2025 State Budget.
Speaking during a working meeting with the Budget Agency (Banggar) of the House of Representatives (DPR), the minister acknowledged growing global economic uncertainty, which has prompted several international institutions to revise downward their forecasts for Indonesia.
“The government will continue to take various mitigation measures so that economic growth can approach or remain at 5 percent,” Minister Indrawati stated.
Despite recent adjustments by external observers, the Indonesian government maintains its growth outlook in the range of 5 percent. Notably, the World Bank recently revised Indonesia’s 2025 economic growth forecast from 5.1 percent to 4.7 percent, while the International Monetary Fund (IMF) issued a similar downgrade, lowering its projection from 5.1 percent to 4.7 percent.
To address potential slowdowns, the Finance Minister emphasized that the government would employ counter-cyclical fiscal instruments, including increased state spending when economic conditions weaken. Key to this strategy are a series of priority programs initiated by President-elect Prabowo Subianto, which are expected to begin implementation in the second half of 2025. These programs include:
- Free Nutritious Meals (MBG)
- Housing Financing Liquidity Facility (FLPP)
- Red and White Cooperatives
- People’s Schools
These initiatives are anticipated to generate strong multiplier effects throughout the economy, stimulating consumption and supporting job creation.
Minister Indrawati also underlined the importance of maintaining low inflation to preserve purchasing power, while continuing to support investment and export momentum as key pillars of growth.
In the face of a volatile global environment, the Indonesian government remains committed to a proactive fiscal policy aimed at sustaining economic resilience and achieving its long-term development goals.
