Indonesia Projects 5.1 Percent GDP Growth in 2025

(MENAFN) Bank Indonesia has projected a modest acceleration in national economic growth this year, forecasting a 5.1% expansion in 2025, up slightly from 5.03% in 2024, according to Governor Perry Warjiyo.

Speaking at a press conference on Wednesday, Warjiyo attributed the expected uptick to stronger household consumption, increased exports, and robust government spending.

“Economic growth in 2025 is forecast at about 5.1 percent, and it could be higher,” he stated.

The central bank anticipates export momentum will pick up in the second half of the year, driven by higher overseas demand for key commodities, including mining outputs, crude palm oil, agricultural products, and fisheries.

Government expenditure is also set to remain expansionary, further fueling investment and domestic demand.

Despite the optimistic outlook, Warjiyo flagged ongoing concerns over global financial volatility, warning that uncertainty in international markets poses a risk to Indonesia’s economic stability. He emphasized the need for continued vigilance to shield the domestic economy from external shocks.

Turning to the banking sector, Warjiyo urged lenders to enhance credit distribution, noting a deceleration in loan growth. Lending increased 7.03% year-on-year in July, down from 7.77% in June, he said.

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