The figure is lower than the 2025 State Budget assumption of 5.2 percent.
“The government will try to take various steps to mitigate so that economic growth can approach or remain at 5 percent,” Indrawati said during a working meeting with the Budget Agency (Banggar) of the House of Representatives (DPR).
According to the minister, the government is still maintaining its economic growth outlook in the range of 5 percent, though a number of international institutions have cut Indonesia’s economic growth forecast.
She said that the government will utilize fiscal instruments counter-cyclically by increasing state spending whenever the economy slows.
This would be realized through various priority programs launched by President Prabowo, such as Free Nutritious Meals (MBG), Housing Financing Liquidity Facility (FLPP), Red and White Cooperatives, and People’s Schools, which are planned to start operating in the second half of 2025.
Furthermore, the State Treasurer said that those programs are expected to have a multiplier effect on the economy. The government will also keep inflation low to protect people’s purchasing power and maintain investment and export momentum, she added.
Amid the uncertainty in the global economy, several international institutions have revised their projections for Indonesia’s economic growth.
The World Bank has downgraded its 2025 economic growth forecast for Indonesia to 4.7 percent from 5.1 percent earlier. Similarly, the International Monetary Fund (IMF) has cut its growth projection from 5.1 percent to 4.7 percent.
Translator: Bayu Saputra, Cindy Frishanti Octavia
Editor: Aditya Eko Sigit Wicaksono
Copyright © ANTARA 2025
