Airlangga Reveals Indonesia's Economic Projection Is Still Positive In 2025

JAKARTA - The Organization for Economic Co-operation and Development (OECD) estimates that Indonesia's economic growth by the end of 2025 will only reach around 4.9 percent, this figure is below the government's target of 5.1 percent.

Responding to the projective differences, Coordinating Minister for Economic Affairs Airlangga Hartarto assessed that the estimates of global institutions such as OECD were still relatively positive.

He said that the figure actually showed an increase compared to previous predictions.

"OECD and others, after all, they are also higher than last time, so actually the OECD upgrade from below 4.9 percent now includes 4.9 percent," he told the media crew at his office, Tuesday, September 30.

Furthermore, Airlangga expressed his belief that the Indonesian economy still has the opportunity to grow according to the target.

According to him, the Government has disbursed various stimuli, including the placement of Rp200 trillion in funds to state-owned banks to boost economic activity.

"So of course with various government programs that have been disbursed, including yesterday also pushing Rp200 trillion into banks, this is expected for the mobile sector," he explained.

Airlangga also revealed that the government is currently evaluating the budget for expenditures from ministries and institutions.

He said there is a possibility of reallocating the budget to strengthen priority programs if there are funds that have not been absorbed.

"We see government spending from ministries and institutions, the Minister of Finance will already conduct an evaluation. The President has agreed, later before October we will see, later of course those that have not been used can be transferred to other programs," he concluded.

Previously, in a report entitled OECD Economic Outlook-Interim Report September 2025, OECD estimated that the Indonesian economy would grow by 4.9 percent by 2025, this figure was 0.2 percentage points higher than the previous estimate released in June 2025.

For 2026, Indonesia's economic growth was also revised to 4.9 percent, an increase of 0.1 percentage points compared to the previous projection.

Meanwhile, this economic growth is expected to be driven by looser monetary policy, strong public investment, and domestic consumption resilience.

In addition, OECD notes that investment recovery will provide a boost to economic momentum, although there are still external challenges such as a decline in global trade and an increase in import rates by the United States which remains a risk to the economy.

In terms of price, Indonesia's inflation is estimated to increase slightly from 1.9 percent in 2025 to 2.7 percent in 2026.

OECD also explained that this increase was mostly due to rupiah depreciation which began to put pressure on the price of imported goods.