Jakarta (ANTARA) - State-owned insurance holding company Indonesia Financial Group (IFG) is optimistic that Indonesia’s economy can grow by up to 5 percent year-on-year (yoy) in 2025, after recording 5.12 percent growth in the second quarter of the year.

Research by IFG Progress projects 2025 growth in the range of 4.7–5.0 percent. Although inflation remains a challenge, improvements in the trade balance and public spending are emerging, supported by Bank Indonesia’s decision to cut its benchmark interest rate to 5.25 percent in July 2025.

In a written statement here on Sunday, IFG Corporate Secretary Denny S. Adji also underscored the insurance sector’s contribution to national economic growth.

The financial services and insurance sector contributed 0.13 percentage points to GDP growth, with the insurance and pension funds subsector accounting for 0.05 percentage points. Adji said the data highlights the sector’s positive role despite global geopolitical challenges and the impacts of climate change.

“With a spirit of synergy, national industry players must strengthen their role in addressing global geopolitical challenges, particularly by opening new opportunities for growth in Indonesia’s insurance sector,” he stated.

To strengthen its strategic role, IFG is participating in the Indonesia Professional Insurance Forum 2025, organized by the Indonesian Insurance Management Experts Association (AAMAI).

The event serves as a platform for industry players to exchange insights and strategies to address geopolitical risks affecting the insurance industry.

“IFG always supports forums that address issues critical to the sustainability of the insurance sector,” Adji said. “Through this event, we aim to help strengthen risk governance and foster adaptive innovation in the face of global uncertainty.”

He added that IFG’s participation reflects its vision as a state-owned holding company committed to supporting national economic growth and enhancing collaboration with regulators, professional associations, and other industry stakeholders.

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Translator: Imamatul Silfia, Katriana
Editor: Primayanti
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