3 months ago
121
January 16, 2025 | 02:23 pm
TEMPO.CO, Jakarta - Bank Indonesia (BI) has revised its economic growth forecast for 2025, lower than its initial projection. The Indonesian central bank predicts economic growth this year to be below the midpoint of 5.1 percent.
BI Governor Perry Warjiyo said Indonesia's growth will be in the range of 4.7 percent to 5.5 percent. “Slightly lower than the previous estimates,” he said in a press conference at BI headquarters, Central Jakarta, Wednesday, January 15, 2025.
Bank Indonesia was initially optimistic for Indonesia’s economic growth to range between 4.8 percent and 5.6 percent. Perry highlighted several global and domestic challenges that caused the revision of the 2025 economic growth forecast.
Exports are expected to slow down this year due to the weakening demand from major trading partner countries, with the exception of the United States. Additionally, Perry said, household consumption remains weak, especially for the lower middle class. “This is due to the lack of strong income expectations and job availability,” he said.
Meanwhile, there have not been many private investments due to the larger production capacity compared to both domestic and export demand. The risk of slowing exports and low consumption has faltered corporate investments.
Bank Indonesia, he said, continues to optimize its policy mix to maintain stability and contribute to sustainable economic growth. BI also underscored the lower economic growth in the fourth quarter of 2024. To boost demand growth this year, the BI Board of Governors Meeting on January 14 and 15, 2025 decided to cut benchmark interest rates by 25 basis points to 5.75 percent.
Editor’s Choice: Bank Indonesia Cuts Benchmark Rate to 5.75 Percent
Click here to get the latest news updates from Tempo on Google News
Bank Indonesia Cuts Benchmark Rate to 5.75 Percent
20 jam lalu
Bank Indonesia (BI) Board of Governors meeting in January 2025 decided to cut the benchmark interest rate to 5.75 percent from 6 percent.
Differences Between BRICS and G7, Which One is Stronger?
6 hari lalu
BRICS vs G7? Which one is stronger in terms of economic growth? Let's follow the discussion of these circumstances here.
Indonesia Eyes Rp13,032tn Investment to Fuel 8% Economic Growth
12 hari lalu
This investment influx is expected to generate quality jobs and serve as a driving force of national economic growth.
Minister Airlangga Comments on IMF's Praise of Indonesia's Economy
15 hari lalu
The International Monetary Fund (IMF) wrote that over the past two decades, Indonesia has undergone a remarkable transformation.
Counterfeit Money Case: Bank Indonesia Clarifies No BI Deposit Certificates Issued
15 hari lalu
Bank Indonesia's (BI) analysis of the counterfeit currency samples revealed a low-quality production process.
Bank Indonesia Reports Counterfeit Money Circulation Trend Continues to Decline
20 hari lalu
Bank Indonesia noted a declining trend in the circulation of counterfeit money. Counterfeit rupiahs are easy to identify
South Korea's Finance Minister Says Ongoing Political Turmoil Weighs on Economic Growth
23 hari lalu
South Korea's finance minister said on Monday, December 23, 2024, that some slowdown in economic growth would be unavoidable.
KPK Raids OJK Office in CSR Funds Corruption Probe
26 hari lalu
The Indonesian Financial Services Authority (OJK) affirmed that the OJK respects the KPK's law enforcement efforts.
BI Reports 186% Surge in QRIS Transactions as Debit Card Usage Declines
27 hari lalu
Bank Indonesia will continue to promote the adoption of QRIS. By 2025, BI aims to reach 58 million QRIS users.
KPK Names Two Suspects in Bank Indonesia CSR Funds Corruption Allegation
29 hari lalu
Corruption Eradication Commission (KPK) has named two suspects in the case of corporate social responsibility (CSR) funds corruption at Bank Indonesia
