September 22, 2025 | 04:21 pm
TEMPO.CO, Jakarta - Governor of Bank Indonesia (BI) Perry Warjiyo estimated Indonesia’s economic growth for 2025 to range between 4.6 and 5.1 percent, supported by recently launched government economic packages.
“We estimate growth at 5.1 percent, slightly above the overall projection for 2025,” Perry stated during a meeting with the House of Representatives Commission XI at the Parliament Complex in Senayan, Jakarta, on Monday, September 22, 2025.
Perry noted that the country’s economic growth needs to better reflect its full capacity. Consumer confidence, he said, declined in August 2025, particularly affecting household consumption indicators.
Despite this, growth is being driven by strong performance in export-oriented sectors, particularly those based on natural resources and manufacturing.
The second-quarter Gross Domestic Product (GDP) also improved, supported by domestic economic activity and robust import-export performance. Perry projected Indonesia’s GDP growth for 2025 to fall within 4.6–5.4 percent.
“All of Bank Indonesia’s policies are focused on boosting economic growth. Our policy mix is aimed at stimulating the economy,” he added.
Perry also highlighted that government spending could further strengthen growth in the latter half of 2025.
“With stronger synergy between Bank Indonesia’s and the government’s policies, we expect economic growth in the second semester to improve,” he said during a press conference following the BI Board of Governors meeting on Wednesday, September 17, 2025.
However, Perry pointed out that household consumption remains weak due to declining consumer expectations, especially among the lower-middle-class population, as well as limited job opportunities.
Investment, he emphasized, needs to be strengthened through the accelerated realization of government priority programs, including the development of Special Economic Zones (SEZs) across various regions.
Exports are also expected to rise, particularly in agricultural and manufactured products such as palm oil to India, following reductions in import duties.
“Bank Indonesia will continue to strengthen synergies with the government’s fiscal stimulus and real-sector policies to drive growth while maintaining economic stability,” Perry said.
From a fiscal perspective, government spending is expected to rise in the second half of 2025, aligned with priority projects in food, energy, defense, and security resilience, as well as the implementation of the newly launched 2025 Economic Policy Package.
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