Ministry Of Finance Reveals Lowering US Import Tariffs Supporting The Manufacturing Sector And National Economic Growth

JAKARTA - Director General of Economic and Fiscal Strategy of the Ministry of Finance (Kemenkeu) Febrio Nathan Kacaribu is optimistic that Indonesia's economic growth will strengthen in Semester II-2025.

This was driven by positive results from trade negotiations between Indonesia and the United States, which resulted in a 19 percent reduction in import rates.

According to him, the reduction in tariffs will have a positive impact on the manufacturing sector in Indonesia.

"We already know that the results of the trade negotiations have a positive impact on our manufacturing activities," Febrio told the media crew, Thursday, July 24.

Febrio conveyed that with this new tariff agreement, Indonesia's economic growth projection, which was previously estimated to only reach 4.7 percent by 2025.

According to him, with the support of lower import rates, Indonesia's economic growth is estimated that in Semester II-2025 it can again penetrate the figure above 5 percent.

"Previously we were threatened with weak growth at 4.7 percent. With this better tariff, we see that economic growth can rebound above 5 percent for the second half," he said.

Febrio said that in the 2025 State Budget, the Government projects a deficit of 2.78 percent of GDP.

Therefore, he conveyed, government spending must be executed more quickly and efficiently.

"So, the first strategy, especially the government, must accelerate spending, starting from the President's priority programs, we must accelerate everything," he added.

He added that the acceleration of spending would be one of the factors in encouraging national economic growth in the second half of 2025.