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Forecast Of Indonesia's Economic Growth Before The World Bank Revised It To 4.7 Percent

The World Bank forecasts Indonesia's economic growth to reach 4.7 percent in 2025, 4.8 percent in 2026, and 5 percent in 2027. In its April 2025 edition of the Macro Poverty Outlook report, the World Bank noted a decline in poverty and unemployment rates in Indonesia, although the creation of middle-class jobs has lagged behind. "Global and domestic policy uncertainties are triggering portfolio outflows that are putting pressure on the rupiah.  

Economic growth is projected to average 4.8 percent until 2027, but uncertainties in trade policy could impact investment and growth," the World Bank stated in a report released on Thursday, April 10, 2025. Consequently, the World Bank emphasizes the need for structural reforms to accelerate growth, along with a cautious approach in fiscal and monetary policy decisions. Additionally, the International Monetary Fund (IMF) projects Indonesia's economic growth at only 4.7 percent for 2025.  

Previously, the World Bank had estimated Indonesia's economic growth at 5 percent, but this figure has been revised down to 4.7 percent. The IMF also reported a decrease in Indonesia's economic growth forecast in its April 2025 World Economic Outlook report, lowering it from 5.1 percent to 4.7 percent for 2025. In response to this change, Finance Minister Sri Mulyani Indrawati remains optimistic that Indonesia's economy can still grow by around 5 percent in 2025. "Indonesia's economic growth in 2025 is expected to remain at approximately 5 percent," stated the Minister of Finance during a press conference following the regular meeting of the Financial Stability Committee (KSSK) II in 2025. Despite the decline in economic growth, Sri Mulyani believes that Indonesia's economic performance is still better compared to other countries, such as Thailand, which is projected to be 1.1 percent lower. 

Tag: Estimated Indonesia's Economic Growth IMF International Monetary Fund World Bank