The Minister Of Finance Is Optimistic That Indonesia's Economy Will Grow By 5 Percent Despite Global Challenges

Tempo/M Taufan Rengganis

The Minister Of Finance Is Optimistic That Indonesia's Economy Will Grow By 5 Percent Despite Global Challenges

Monday, 28 Apr 2025

Finance Minister Sri Mulyani expresses confidence that Indonesia's economy can still grow by 5 percent in 2025 despite significant global economic uncertainties. This optimism is attributed to the high level of consumer spending in Indonesia and various government policies. Although the International Monetary Fund (IMF) has reduced its growth forecast for Indonesia this year by 0.4 percent, from 5.1 percent to 4.7 percent due to the impact of the United States' reciprocal tariff policies, the Minister noted that this adjustment is less severe compared to other countries with greater international trade intensity.

For instance, Thailand's adjustment is 1.1 percent, Vietnam's is 0.9 percent, the Philippines' is 0.6 percent, and Mexico's is 1.7 percent. During a press conference on May 24, 2025, she stated, 'The economic growth of Indonesia in 2025 is expected to remain around 5 percent.' The Minister further explained that Indonesia's economic growth in the first quarter of 2025 remains positive amidst global dynamics, supported by robust household consumption bolstered by government spending in the form of holiday allowances, social assistance, and incentives.

Additionally, the continuity of national strategic projects across various regions and the increase in private property construction are anticipated to enhance investment performance. Private investment in Indonesia remains strong, driven by producer confidence reflected in the manufacturing sector's continued expansion. She noted that investments, particularly in non-construction sectors, continue to support economic growth, as evidenced by rising imports of capital goods, especially heavy machinery. Meanwhile, export performance is also expected to remain strong, supported by an increase in non-oil and gas exports in March 2025, particularly in commodities such as crude palm oil, iron and steel, and electrical machinery and equipment.