The World Bank’s East Asia and Pacific Economic Update released on Tuesday raised Indonesia’s 2025 GDP growth forecast from 4.7% to 4.8%.
However, the institution warned that current government measures to maintain growth may be insufficient to support long-term economic expansion.
Last month, Indonesia’s central bank projected that economic growth would exceed the midpoint of the 4.6%-5.4% target range.
To support this outlook, the central bank has cut interest rates by a total of 150 basis points since last September.
In September of this year, the Indonesian government introduced a series of new incentives and programs aimed at stimulating economic growth, reducing unemployment, and creating a more favorable investment environment.
Prior to this, stimulus funds totaling 24.44 trillion Indonesian rupiah (equivalent to $15 billion) were announced in May.
Recent data shows that Indonesia’s economy grew by 5.12% in the second quarter of 2025, marking the fastest growth rate since the second quarter of 2023.
