Jokowi Forecasts 5.2% Economic Growth for Indonesia in 2025

TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo presented on Friday, August 16, 2024, the 2025 State Budget Bill and Financial Note during the MPR Annual Session. He outlined the government's economic projections for the upcoming year, including an estimated economic growth rate of 5.2%, driven primarily by domestic demand.

“The 2025 State Budget Bill is based on assumptions of 2.5% inflation and 5.2% economic growth,” he stated.

Given the ongoing global economic challenges, Jokowi said the national economic growth will rely more on domestic demand. He highlighted the government's role in utilizing the state budget to stimulate progress and escape the middle-income trap by capitalizing on the demographic bonus, continuing economic transformation, attracting investments, and creating jobs.

“Public purchasing power will be tightly maintained, by focusing on inflation control, job creation, and social assistance and subsidy programs,” he said.

Additionally, the government would keep increasing exports of high-value-added products through competitive fiscal incentives while ensuring fiscal sustainability. The government would also maintain a balanced approach between fiscal, monetary, and financial sectors to accelerate economic growth and safeguard financial system stability.

The rupiah exchange rate is projected to be around Rp16,100 per US dollar, and the 10-year Government Securities (SBN) interest rate is estimated at 7.1%. The government would remain responsive to global monetary dynamics.

Meanwhile, Indonesia's crude oil price (ICP) is envisioned to be US$82 per barrel. Oil lifting is expected to reach 600,000 barrels per day, and natural gas production is estimated at 1.005 million barrels of oil equivalent per day.

ANTARA

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