Sri Mulyani Reduces Economic Growth Projection By 2025 To 5 Percent

JAKARTA - Finance Minister Sri Mulyani Indrawati lowered Indonesia's economic growth projection in 2025 to 5 percent or lower than the assumption in the 2025 State Budget which was 5.2 percent.

Sri Mulyani explained that all international institutions estimate that Indonesia's economic growth in 2025 will only reach 4.7 percent.

However, the government is still trying to maintain economic growth at the level of 5 percent through various mitigation measures.

"The government will try to take various steps to mitigate so that economic growth can be close to or still occur at 5 percent," he said in a meeting with the DPR's Budget Agency, Tuesday, July 1.

Sri Mulyani emphasized that the government will use counter-cyclical fiscal instruments, namely increasing state spending when the economy is slowing.

He gave an example, such as free nutritious food, Housing Financing Liquidity Facilities (FLPP), Red and White Cooperatives, and People's Schools which are planned to start running in the second semester of 2025.

Sri Mulyani said the programs had a multiplier effect on the economy.

In addition, he said the government would keep inflation low to protect people's purchasing power and maintain investment and export momentum.