BI Forecasts Indonesia’s Economy to Surge with 5.7% Growth by 2025

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Bank Indonesia (BI) predicts that Indonesia’s economy in 2025 will be able to grow within the range of 4.9-5.7 percent, supported by, among others, the industrial downstreaming, exports, and the digitization of the economy.

“Overall, in the medium to long term by 2025, we predict that economic growth could rise to 4.9-5.7 percent, and even higher until 2028 with a growth rate of 5.1-5.9 percent,” said the candidate for Governor of BI 2023-2028, Perry Warjiyo, during his fitness and propriety test at the XI Commission of the DPR in Jakarta on Monday.

BI Forecasts Indonesia's Economy to Surge with 5.7% Growth by 2025

The XI Commission of the Indonesian DPR held a fitness and propriety test for the sole candidate for the Governor of BI for the 2023-2028 period, Perry Warjiyo. Perry was proposed by President Joko Widodo (Jokowi) as the Governor of BI for the 2023-2028 period.

Perry, who currently serves as the Governor of BI, said that in the medium to long term, BI will continue to support government policies to increase economic capacity, including infrastructure development, industrial downstreaming and exports, as well as structural reform and the digitization of the economy, as well as improving human resources.

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In addition, BI also predicts that inflation will remain low at around two and a half percent plus or minus one percent, supported by the increase in national production capacity in meeting the rise in aggregate demand.

BI Forecasts Indonesia's Economy to Surge with 5.7% Growth by 2025

Perry also stated that the current account deficit is expected to remain under control at a low level, thereby supporting the stability of the exchange rate of the rupiah, the increase of foreign exchange reserves, and the resilience of Indonesia’s external sector.

Furthermore, BI predicts that the economic prospects of Indonesia for 2023-2024 will continue to recover and rebound, where the Indonesian economy is predicted to grow in the range of 4.5-5.3 percent in 2023, and higher in 2024 in the range of 4.7-5.5 percent.

Inflation in 2023 is expected to return to the target range of three plus or minus one percent, with core inflation remaining around three percent. Meanwhile, consumer price index (CPI) inflation is expected to fall below four percent starting from September 2023, and is targeted to be at two and a half plus or minus one percent in 2024.

Furthermore, credit growth is expected to grow in the range of 10-12 percent in 2023 and 2024. External stability will remain preserved. The digital economy and finance will also continue to grow in 2023 and 2024, supported by the development of e-commerce, electronic money, and digital banking.

Overall, with the trajectory of Indonesia’s economic recovery prospects, Perry said that Indonesia is expected to become a high-income developed country by 2047.

Article Source: BI memperkirakan ekonomi Indonesia 2025 tumbuh hingga 5,7 persen

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