Jakarta ( WNAM MONITORING ): Bank Indonesia (BI) has projected that Indonesia’s economy will improve in the second half of 2025, with overall growth expected to reach 4.6 percent to 5.4 percent.
“We must continuously strengthen various policy responses, both regarding domestic and international demand, to foster economic growth,” BI Governor Perry Warjiyo said here on Wednesday.
He urged all stakeholders to continue efforts to bolster Indonesia’s economic growth amid current global uncertainties stemming from United States’ tariff policy as well as geopolitical tensions in the Middle East.
He noted that national economic growth in the second quarter of 2025 was stronger than expected, especially in the back of non-oil and gas exports, due to an increase in shipments to the United States as the industry anticipated changes in US tariffs.
However, Warjiyo said that several aspects of domestic demand, as a source of economic growth driven by household consumption and investment, needs to be bolstered further.
Therefore, the Indonesian government is focusing on fiscal policies aimed at accelerating public spending, such as disbursing bonuses to civil servants, transportation subsidies, as well as social assistance for low-income households.
Meanwhile, Bank Indonesia is striving to stimulate economic growth by lowering interest rates, easing liquidity, and increasing macroprudential liquidity incentives to boost credit expansion to priority sectors that are crucial for economic growth.
Warjiyo said that BI will strengthen the implementation of the monetary policy, macroprudential policy, and payment system alongside fiscal stimulus and support for the real economy.
The central bank will also continue to collaborate with the government to realize the Asta Cita program, which is designed to foster a resilient and inclusive national economy.
“Bank Indonesia will continue to boost Indonesia’s economic growth by strengthening the policy mix,” he added.
