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April 16, 2025 | 05:38 pm
TEMPO.CO, Jakarta - The rupiah closed weaker in Wednesday afternoon trading on April 16, 2025, slipping 10 points to Rp16,837 per US dollar. For the upcoming Monday's session, the currency is projected to continue its decline, fluctuating between Rp16,830 and Rp16,890.
"On this afternoon's trade, the rupiah closed 10 points weaker from the previous 30 point drop," said currency analyst Ibrahim Assuaibi in a written statement on Wednesday, April 16, 2025.
Ibrahim mentioned that Indonesia's economic growth in the first quarter of 2025 is predicted to slow to around 4.9 percent to 5 percent. This projection is slower than the economic growth in the fourth quarter of 2024, which reached 5.02 percent.
He also projected that annual economic growth for 2025 would likely fall within the range of 4.8 to 5 percent, below the 5.2 percent target set in the 2025 macroeconomic assumptions.
Meanwhile, the National Medium-Term Development Plan (RPJMN) for 2025 to 2029 has targeted a 5.3 percent economic growth rate for this year.
Ibrahim pointed to several domestic factors hindering growth, including issues with structural reforms, the effectiveness of government spending, low productivity in the real sector, and the need for stronger fiscal and monetary policy coordination. He also stressed the importance of reinforcing the domestic economy’s fundamentals.
"In fact, the fiscal condition at the beginning of the year was quite worrying," he said.
As of the end of March 2025, the state budget deficit had reached Rp104.2 trillion, equivalent to 0.43 percent of GDP. This already accounts for approximately 16.9 percent of the targeted 2025 budget deficit and revenue goal of Rp616.2 trillion, or 2.53 percent of GDP.
"In addition, the declining purchasing power of the people, as indicated by the deflation in January and February 2025, layoffs and a significant number of unemployed, and the minimal absorption of job opportunities, including labor-intensive industries collapsing," he added.
On the global front, Ibrahim highlighted that investors are still struggling to find strong catalysts for meaningful recovery, especially with global economic growth projected to slow amid rising U.S. tariffs that pose a threat to international markets.
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