Bank Indonesia (BI) predicts that Indonesia's economic growth will improve in the second semester of 2025, with overall economic growth in 2025 predicted to be in the range of 4.6-5.4 percent.
"Various policy responses need to continue to be strengthened to encourage economic growth, both from the domestic and external demand side," said BI Governor Perry Warjiyo in a press conference on the results of the BI Board of Governors Meeting (RDG) in June 2025 in Jakarta, Wednesday.
Perry said that Indonesia's economic growth needs to continue to be encouraged amid global uncertainty due to the United States (US) tariff policy and geopolitical tensions in the Middle East.
Economic activities in the second quarter of 2025 showed better non-oil and gas export performance, influenced by front loading of exports to the United States as an exporter's anticipatory response to the United States' tariff policy.
Meanwhile, sources of growth from domestic demand through household consumption and investment need to be further increased.
From the government's side, fiscal policy is taken to accelerate spending by providing the 13th salary for State Civil Apparatus (ASN) and transportation subsidies, as well as increasing social assistance to beneficiary families.
From Bank Indonesia's perspective, interest rate cuts and liquidity easing are pursued through monetary policy accompanied by increased macroprudential liquidity incentives (KLM) to encourage financing credit to priority sectors driving economic growth.
"Bank Indonesia will continue to strengthen synergies to drive economic growth by strengthening the mix of monetary, macroprudential, and payment system policies with the government's fiscal and real sector stimulus policies, including the implementation of the Asta Cita program," Perry said.
