Finance Minister Sri Mulyani Indrawati recently revised Indonesia’s economic growth outlook for the second half of 2025 downward from 5.2 percent to 4.7–5.0 percent.
She announced the adjusted target during a working meeting with the House of Representatives’ Budget Committee (Banggar) and Bank Indonesia in Jakarta on July 3, 2025.
“In terms of the growth outlook, we must view our country’s performance within the global context. The international economy is indeed slowing down, with global growth forecasts averaging just 2.3 percent,” Hasan said at a press conference at the PCO in Jakarta on Tuesday.
He explained that as global growth is trending downward, it is natural for Indonesia to adjust its expectations accordingly.
“However, even with these adjustments, we remain highly optimistic. Our projected growth is still well above the global average of 2.3 percent,” he added.
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Hasan emphasized that the revised target of 4.7 to 5.0 percent should be seen in a positive light.
“This is not a sign of pessimism. On the contrary, we’re still very optimistic when we look at the broader global situation. While other countries may be forecasting growth between zero and 1 percent, we’re still maintaining a considerably higher rate,” he said.
Hasan also expressed confidence that Indonesia’s economy will show further improvement over the next six months, particularly as the government eases spending constraints and expands priority programs such as the Free Nutritious Meals (MBG) initiative.
“Over the next six months, we expect to see the impact of the relaxation of government spending—on capital expenditure, goods procurement, and social assistance. These are likely to stimulate the economy in the near term,” he added.
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Translator: Genta, Azis Kurmala
Editor: M Razi Rahman
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