BI Boss Stresses Indonesia's Economic Growth Needs to Be Boosted Amid Global Weakness

Bank Indonesia (Photo: Antara)

JAKARTA - Bank Indonesia (BI) assesses that Indonesia's economic growth needs to continue to be stimulated amidst a weakening global economic outlook.

BI Governor Perry Warjiyo stated that in the second quarter of 2025, economic growth will be supported by non-construction investment related to activities in the transportation sector.

Perry emphasized that export performance is quite good, supported by natural resource-based exports and manufactured products.

"Meanwhile, household consumption still needs to be increased, as reflected in slowing retail sales," he said at a press conference on Wednesday, July 16.

Looking ahead, he stated that economic growth in the second half of 2025 is predicted to improve, and overall for 2025 is projected to be in the range of 4.6 percent–5.4 percent.

Furthermore, Perry stated that improving domestic demand is supported by continued positive export performance in line with the outcome of tariff negotiations with the US government.

He assessed that the various policy responses from the government and Bank Indonesia have also increased the confidence of economic actors, which will ultimately stimulate economic activity.

"In this regard, the government is implementing fiscal stimulus for social protection and the implementation of flagship programs within Asta Cita," he emphasized.

Perry stated that in addition to maintaining stability, Bank Indonesia's policies are also aimed at stimulating economic growth by lowering the BI Rate, easing liquidity, and increasing macroprudential incentives for banks to encourage credit and financing in priority sectors.

"Bank Indonesia will continue to strengthen its mix of monetary, macroprudential, and payment system policies, in close synergy with the Government's fiscal and real sector stimulus policies to drive economic growth," he said.