Indonesia expects 5% economic growth despite IMF forecast revision

Indonesian Finance Minister Sri Mulyani Indrawati has expressed confidence that the country’s economy will grow by up to 5% in 2025, despite the International Monetary Fund (IMF) having revised down the national growth forecast to 4.7%.

As reported by Jakarta Globe, speaking after the second quarterly meeting of the Financial System Stability Committee (KSSK), the minister said the IMF’s latest projection was below its previous one of 5.1%.

She noted the downward revision is milder compared to other trade-dependent countries like Thailand, Vietnam, and the Philippines.

To address risks, she said the government is strengthening its domestic economic foundation through a mix of fiscal and monetary coordination.

Export performance, particularly in palm oil, steel, and electrical machinery, showed improvement in March, helping to balance weaker commodity prices, she said.

Meanwhile, authorities are actively exploring new markets, including within ASEAN Plus 3, BRICS, and Europe, to counter the impact of US trade barriers.