TEMPO.CO, Jakarta - Bank Indonesia (BI) predicts that Indonesia's economic growth will improve in the second semester of 2025. Throughout this year, BI is optimistic that the Indonesian economy could grow by 4.6 to 5.4 percent.
"Overall, Bank Indonesia predicts that economic growth will be within the range of 4.6 to 5.4 percent in 2025," said the Governor of BI, Perry Warjiyo, in a virtual press conference on Wednesday, June 18, 2025.
Perry explained that Indonesia's economic growth needs to be continuously driven, amidst global uncertainty due to the United States' tariff policies. In addition, the current geopolitical tension in the Middle East is also a concern.
He explained that economic activity in the second quarter of 2025 showed improved performance in non-oil and gas exports. This was influenced by the front-loading of exports to the United States in response to the U.S. tariff policies. Meanwhile, the sources of growth from domestic demand through household consumption and investment, according to BI, need to be further increased.
From the government's side, BI mentioned that fiscal policies were taken to expedite expenditure. For example, this includes providing a 13th-month salary to civil servants (ASN) and transportation subsidies, as well as increasing social assistance to beneficiary families (KPM).
Meanwhile, BI implemented a policy of lowering interest rates and relaxing liquidity through monetary policies, which were accompanied by an increase in macroprudential liquidity incentives. According to the BI chief, this policy was implemented to encourage credit and financing for prioritized sectors.
Perry emphasized that various policy responses must be continuously strengthened to boost economic growth, from both the domestic and external demand sides.
According to Perry, synergy will continue to be strengthened to enhance economic growth. "Bank Indonesia will continue to strengthen synergy to drive economic growth through the strengthening of a mix of monetary policies, macroprudential, and payment systems, with fiscal stimulus policies and the real sector of the Government, including the implementation of the Asta Cita program," he said.
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