IMF Cuts Projection, Government Confident Indonesian Economy Will Grow

Beritasatu.com/Arnoldus Kristianus

IMF Cuts Projection, Government Confident Indonesian Economy Will Grow

, 04 May 2025

The government is optimistic that Indonesia's economic growth in 2025 will be maintained even amidst predictions of a global economic slowdown. The national target remains set at 5.2%, even though the International Monetary Fund (IMF) has cut Indonesia's growth projection to 4.7%.

"If you look at the projection decline, it is only 0.4%. Compared to the US and China which fell by 0.9%, we are still in an optimistic position," said Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, Tuesday (4/29/2025).

Rely on Household Consumption

The government will optimize domestic growth sources, especially from household consumption, which has been the mainstay of the Indonesian economy.

"Indonesia's economic structure is more resilient because it is not too dependent on global dynamics. Public consumption makes a big contribution," explained Susiwijono regarding the Indonesian economy.

Global Challenges and Government Strategy

One of the external risks faced by Indonesia is the potential for retaliatory import tariffs from the United States. However, Indonesia became the first country to be accepted in the negotiation process that lasted for 60 days.

"Our technical team has already sat together, even before other countries entered that stage," said Susiwijono.

Meanwhile, Andalas University economist Syafruddin Karimi reminded that the 5.2% growth target cannot be achieved without the right strategy, quick response, and aggressive structural reform.

"Without concrete and measurable steps, the growth momentum could turn into a lost opportunity," Syafruddin emphasized regarding the Indonesian economy.