Coordinating Minister Airlangga Calls Outlook Released By IMF Proof That Indonesia's Economy Is Still Strong

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. Antara)

Coordinating Minister for Economic Affairs Airlangga Hartarto said the 2025 Indonesian economic outlook released by the International Monetary Fund (IMF) is proof that Indonesia's economic fundamentals are still strong.

Indonesia's economic growth is projected by the IMF to be at 5.1 percent in 2025. Through the official upload of the Instagram account @the_imf on Sunday (29/12), the IMF said Indonesia had succeeded in economic transformation in the last two decades.

"This confirms Indonesia's success in maintaining economic fundamentals to remain strong and at the same time provide a signal for the world to continue to make Indonesia a good destination for investment," Airlangga said in a statement in Jakarta, quoted by Antara, Monday, December 30.

The IMF also states that Indonesia has succeeded in upgrading its Gross Domestic Product (GDP) fourfold and reducing the poverty rate tenfold over the past two decades.

Meanwhile, the outlook for the global economy throughout 2024 is projected to grow at the level of 3.2 percent and is projected to grow stagnantly at the level of 3.2 percent by 2025.

For developed countries, economic growth in 2025 is projected to be at the level of 1.8 percent and for emerging market countries and economies development is projected to be at the level of 4.2 percent by 2025.

Meanwhile, formed in July 1944 during the Bretton Woods Conference, the IMF seeks to achieve sustainable growth and prosperity for all 191 member states.

This organization supports economic policies that promote financial stability and monetary cooperation, which is important for increasing productivity, job creation, and economic welfare.

In the Instagram account, the IMF states that Indonesia is an archipelagic country in Southeast Asia with 270 million inhabitants, spanning 3,300 miles from west to east which has the same distance from London to Kabul, has quadrupled its GDP to 1.4 trillion US dollars.

Furthermore, the IMF also states that the number of Indonesians living with revenues of less than US$2.15 per day has decreased tenfold to less than 2 percent.

It was also stated that the city of DKI Jakarta recorded revenues that were almost equivalent to several European countries such as Poland and Portugal.

As for the next five years, the Prabowo-Gibran Government is aiming for 8 percent economic growth. This ambitious target refers to Indonesia's achievement in 1995, when economic growth once reached 8.2 percent.

To pursue this target, Airlangga explained that consumption, investment and exports are the main pillars. The government targets the consumption sector to be maintained in the growth range of 5-6 percent, targeted investment to grow 10 percent, and exports to be driven to grow 9 percent.

In addition, there are several sectors that are projected to be the driving force for growth, including manufacturing, especially through downstreaming industry, services and tourism, digital economy, green economy, semiconductor, and construction/residential.

"Now we are also encouraging the manufacturing sector, then also some exports of downstream natural resources and palm oil, and also from the manufacturing sector itself including the automotive sector," said Airlangga at the 2025 Indonesia Economic Outlook Business event, Tuesday, December 10.