April 24, 2025 | 03:08 pm
TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati is confident that Indonesia’s economy will grow by up to 5 percent in 2025. Sri Mulyani remains optimistic despite the International Monetary Fund (IMF) cutting Indonesia’s economic growth projection to 4.7 percent.
“Indonesia’s economic growth in 2025 is still expected to reach around 5 percent,” said Sri Mulyani during a press conference following the 2025 second periodic meeting of the Financial System Stability Committee (KSSK).
In the April 2025 edition of the World Economic Outlook report, the IMF revised its economic growth projections for countries worldwide. The IMF now predicts Indonesia’s economy will grow by only 4.7 percent in 2025, down from its earlier forecast of 5.1 percent.
The IMF’s downward revision comes amid rising trade war tensions following the United States’ announcement of reciprocal tariffs. Sri Mulyani stated that the IMF lowered its forecast for Indonesia’s economic growth by 0.4 percent compared to its previous prediction.
Nevertheless, Sri Mulyani stated that the IMF’s revision of Indonesia’s economy was more favorable than other countries. For example, Thailand’s projection was revised by 1.1 percent from the previous estimate, Vietnam’s by 0.9 percent, the Philippines' by 0.6 percent, and Mexico's by 1.7 percent.
According to Sri Mulyani, the sharper downward revisions for some countries were due to their heavy reliance on international trade. “Their exposure to international trade is greater, and the impact or connection of their economies to the U.S. is also stronger,” said Sri.
The worsening impact of the tariff war has become more evident after China announced retaliatory measures. Although most countries have responded to the U.S. reciprocal tariff policy through diplomatic channels or negotiations, retaliatory actions, according to Sri Mulyani, have further strained trade relations between the U.S. and China.
In light of these developments, she said, Indonesia will continue to heighten its vigilance in facing global economic dynamics. In addition to pursuing negotiations, the government will support domestic demand through fiscal and monetary policies.
Confidence in strong economic growth prospects stems from continuing national strategic projects and increasing construction that stimulates investment. Indonesia's manufacturing sector also remains in expansion, and export performance is expected to stay strong.
Indonesia’s exports are supported by an increase in non-oil and gas exports, particularly palm oil (CPO), iron and steel, as well as machinery and electrical equipment. According to Sri Mulyani, the government is also actively exploring opportunities to expand exports of leading products in ASEAN markets, BRICS countries, and Europe, amid the reciprocal tariff policy imposed by the U.S. Due to these factors, she projects that Indonesia's economy will still grow by 5 percent in 2025.
Editor's Choice: IMF Downgrades Indonesia's Economic Growth Forecast to 4.7%
Click here to get the latest news updates from Tempo on Google News
Indonesian Judge Sentences Student to 2.5 Years in Prison for Promoting Online Gambling
4 jam lalu
A district court in Medan sentenced a 20-year-old university student to two and a half years in prison for promoting an online gambling site
IMF Downgrades Indonesia's Economic Growth Forecast to 4.7%
4 jam lalu
The projection is outlined in the April 2025 edition of the World Economic Outlook report, which analyzes the impact of U.S. tariff adjustments.
Prabowo: Don't be Afraid of Stocks Rising or Falling, Our Country is Rich
4 jam lalu
Indonesian President Prabowo Subianto has again brought up the issue of stock price movements, and states that there is nothing to worry about.
Indonesian Govt Urged to Investigate Findings of Children's Snacks Containing Pork
5 jam lalu
Indonesian Ulema Council (MUI) has urged the government to immediately resolve the findings of a number of children's snack products containing pork.
Prabowo: Indonesia to Export Rice for Humanitarian Reasons, Not Profit
21 jam lalu
Indonesian President Prabowo Subianto has permitted the government to export rice abroad.
South Korean Embassy Hosts Greenpeace Indonesia on Activist Detention
21 jam lalu
Greenpeace Indonesia Head Leonard Simanjuntak said the Counsellor on Environmental Affairs at the South Korean Embassy welcomed them.
Indonesia, Estonia Forge Partnership to Drive Digitalization
21 jam lalu
Indonesia and Estonia agree to strengthen bilateral cooperation in digitalization.
Indonesia Sends Jokowi for Pope Francis' Funeral
23 jam lalu
The Indonesian government offers its condolences following Pope Francis' death on Monday, April 21.
Completion of AI Regulations Draft in Indonesia Targeted for 3rd Quarter of 2025
1 hari lalu
The Ministry of Communication and Digital (Komdigi) is still speeding up the drafting of artificial intelligence (AI) regulations in Indonesia.
8 Trade Barriers in Indonesia According to the US
1 hari lalu
The trade barriers in Indonesia complained about by the US are stated in 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers document.
