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Sri Mulyani Forecasts An Economic Growth Of 5 Percent For 2025

Indonesian Finance Minister Sri Mulyani Indrawati has projected that the country's economic growth in 2025 will be approximately 5 percent.

This figure is lower than the assumption set in the 2025 State Budget (APBN), which is established at 5.2 percent.

"The government will attempt to implement various measures to mitigate the situation so that economic growth can approach or remain at 5 percent," stated Sri Mulyani during a working meeting with the Budget Agency (Banggar) of the Indonesian House of Representatives in Jakarta on Tuesday.

She noted that the government is still maintaining its economic growth outlook at around 5 percent, despite several international institutions reducing their projections for Indonesia's economic growth.

She conveyed that the government plans to utilize countercyclical fiscal instruments by increasing state spending during periods of economic slowdown. This can be realized through various priority programs of President Prabowo, such as free nutritious meals (MBG), the Liquidity Financing Facility for Housing (FLPP), the Red and White Cooperative, and the People's School, which is scheduled to commence in the second semester of 2025.

Furthermore, the State Treasurer indicated that these programs have a multiplier effect on the economy. Additionally, the government will also ensure that inflation remains low to protect the purchasing power of the public and to maintain the momentum of investment and exports.

In the midst of global economic uncertainty, several international institutions have revised their projections for Indonesia's economic growth.

The World Bank forecasts that Indonesia's economy will grow by 4.7 percent in 2025, a decrease from the previous projection of 5.1 percent. Similarly, the International Monetary Fund (IMF) has lowered its growth forecast for Indonesia from 5.1 percent to 4.7 percent for the year 2025.

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Tag: APBN Sri Mulyani Indrawati World Bank