Bank Indonesia Pangkas Economic Growth Projection 2025

BI Governor Perry Warjiyo (Photo: dock. Antara)

JAKARTA - Bank Indonesia (BI) revealed that Indonesia's economic growth in 2025 is estimated to reach 4.7 percent to 5.5 percent, tends to be slightly lower than the previous forecast range at the level of 4.8 percent to 5.6 percent.

BI Governor Perry Warjiyo said the decline in economic projections in 2025 was estimated to be due to low export value due to the slow demand for major trading partner countries, except the US.

Perry added that household consumption is also still weak, especially the lower middle class in connection with the lack of strong expectations of income and employment availability.

In addition, Perry said that the push for private investment has not been strong because the production capacity is still greater in meeting demand, both domestically and exports.

"Bank Indonesia predicts Indonesia's economic growth in 2025 to reach the range of 4.7 percent to 5.5 percent, slightly lower than the previous forecast range of 4.8 percent 5.6 percent," he said at a press conference, Wednesday, January 15.

Perry said Bank Indonesia continues to optimize its policy mix to maintain stability and contribute to sustainable economic growth.

According to him, these efforts were carried out through optimizing the macroprudential policy stimulus and accelerating the digitization of payment transactions taken by Bank Indonesia with the Government's fiscal stimulus policy.

Furthermore, Perry said that Bank Indonesia also fully supports the implementation of Government programs in Asta Cita, including for food security, economic financing, as well as accelerating the digital economy and finance.

Perry said that economic growth in the fourth quarter of 2024 was slightly below forecasts influenced by lower domestic demand, both consumption and investment.

"Overall, economic growth in 2024 is forecast slightly below the midpoint of the range of 4.7 percent to 5.5 percent," he explained.