Febrio Kacaribu, an official at the Finance Ministry, said in Jakarta on Thursday that the World Bank’s projection does not fully account for Indonesia’s fiscal policies, which are aimed at maintaining economic growth momentum.
The World Bank earlier forecast Indonesia’s economic growth in 2025 at 4.8 percent, up from an initial estimate of 4.7 percent. Although the figure represents an improvement, it remains below the government’s target of 5.2 percent.
Kacaribu said projections by international institutions are often based on limited macroeconomic data, while the government has prepared several stimulus measures to boost the economy.
He added that the government is optimistic growth could reach 5.4 percent in 2026.
According to Kacaribu, international institutions such as the World Bank, the International Monetary Fund (IMF), the Asian Development Bank (ADB), and the Organization for Economic Cooperation and Development (OECD) continue to monitor Indonesia’s economic performance closely because they have a strong interest in investing in the country.
“That is why they continuously monitor Indonesia’s economy,” he said.
Kacaribu noted that the OECD, which represents developed nations, keeps a close watch on Indonesia’s economic conditions to identify investment opportunities, publishing regular reports and studies to assess the country’s performance and potential.
He welcomed the attention from international institutions and said the government remains open to highlighting potential sectors and providing policy support to strengthen investment prospects.
In the October 2025 edition of the East Asia and Pacific Economic Update released on Tuesday (Oct. 7), the World Bank reported that economic growth in several East Asia and Pacific countries remains relatively strong.
However, the report noted that some measures taken to sustain current growth may be insufficient to support future expansion.
It added that Indonesia’s fiscal challenges are more related to the composition of government spending than to the size of the deficit, which is expected to remain within the limits set by national fiscal regulations.
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Translator: Bayu Saputra, Cindy Frishanti Octavia
Editor: Primayanti
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