IMF Lowers Indonesia's Economic Projection, Sri Mulyani Remains Optimistic To Grow At 5 Percent

Illustration (Photo: Doc. ANTARA)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati opened her voice regarding the projection of the International Monetary Fund (IMF) which revised Indonesia's economic growth in 2025 from 5.1 percent to 4.7 percent.

Sri Mulyani is optimistic that the Indonesian economy has the opportunity to continue to grow amid increasing global uncertainty.

"In the future, the Indonesian economy will have the opportunity to continue to grow sustainably. Indonesia's economic growth in the first quarter of 2025 is expected to remain positive even though global uncertainty has increased," Sri Mulyani said at the Press Conference of the Financial System Stability Committee (KSSK), Thursday, April 24.

According to him, this is supported by the strong consumption of households, which is supported by various government spending, such as payment of holiday allowances (THR), social assistance, and various other incentives provided ahead of and during the Eid al-Fitr 1445 H period.

In addition, he added, the sustainability of national strategic projects in various regions and the increasing construction of private property is expected to improve investment performance.

"State investment is still well supported by manufacturers' beliefs seen in Indonesia's manufacturing activities which are still in the expansionary zone," he said.

On the other hand, Sri Mulyani said that non-building investment remains a support for economic growth as reflected in the increase in imports of capital goods, including heavy equipment.

Meanwhile, in terms of export performance, it is also estimated that exports will also be well supported by non-oil and gas exports which will increase in March 2025, especially mainstay commodities such as crude palm oil (CPO), iron and steel, as well as electric machinery and equipment.

"The government is also actively exploring the potential expansion of exports of superior products in the ASEAN+3, BRICS, and in Europe amid the repirocal tariff policy implemented by the US," he said.

Sri Mulyani emphasized that taking into account strong domestic factors and trade strategies that are adaptive to Indonesia's economic growth in 2025 will be in the range of 5 percent.