Jakarta: The government aims to achieve economic growth between 5.1 percent and 5.5 percent in 2025, focusing on sustainable inflation, the development of the electric vehicle industry, digitalization, and climate change initiatives through green economy and energy policies. Indonesia had set a
“We are optimistic that with hard work to maintain economic stability and a commitment to breakthrough policies, economic growth is projected to reach 5.1 percent to 5.5 percent. This growth rate is expected to lay a strong foundation for higher growth in the following years,” said Finance Minister Sri Mulyani Indrawati during a plenary session at the Parliament building in Jakarta on Monday.
Meanwhile, President-elect Prabowo Subianto recently expressed confidence in achieving 8 percent economic growth within the first two to three years of his presidency. He highlighted food production and Indonesian biodiesel production as key drivers of this growth, which surpasses current rates.
Indonesia’s economic growth in the first quarter of 2024 reached 5.11 percent year on year (yoy), slightly below the Finance Ministry projection of around 5.17 percent. The government had set a target of 5.2 percent GDP growth this year.
In comparison, the International Monetary Fund (IMF) projects Indonesia’s growth rate to reach 5 percent for both the present and upcoming years. Meanwhile, the World Bank forecasts a slight decline in growth for 2024 and 2025, with rates anticipated to settle at 4.9 percent annually.
