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Sri Mulyani Cuts RI's 2025 Economic Growth Target To 4.7-5 Percent

The Ministry of Finance (Kemenkeu) has cut Indonesia's 2025 economic growth target from 5.2 percent to around 4.7 percent to 5.0 percent. Finance Minister Sri Mulyani Indrawati said that the cut in Indonesia's economic growth target was carried out by adjusting the projections of international institutions that lowered Indonesia's economic growth projections. The World Bank has cut Indonesia's economic growth this year from 5.1 percent to 4.7 percent. Likewise, the International Monetary Fund (IMF) has cut Indonesia's economic growth projections in 2025 and 2026 from 5.1 percent to 4.7 percent. 

Even the Organization for Economic Cooperation and Development (OECD) has twice cut Indonesia's economic growth projections from 5.2 percent to 4.9 percent and most recently to 4.7 percent. 

"All international institutions predict that Indonesia will probably grow at 4.7 percent. The government will try to take various mitigation steps so that economic growth can approach, or even reach, 5 percent," he said during a Working Meeting with the DPR RI Budget Agency, Tuesday (1/7/2025). 

Nevertheless, the government will try to maintain national economic growth at the 5 percent level this year by taking various mitigation efforts. One of them is by trying to provide economic stimulus and accelerating spending, especially for priority government programs. At the same time, it also anticipates the risks of global uncertainty. "To be able to maintain this economic growth, we will take various steps. Fiscal instruments must be one of the mainstays to carry out counter cyclical superior programs such as MBG, FLPP, all of which have a multiplier effect, all of which will start running in the second semester," he said. 

Tag: 2025 Economic Growth Kemenkeu Sri Mulyani Indrawati