September 17, 2025 | 05:59 pm
TEMPO.CO, Jakarta - Bank Indonesia (BI), the nation's central bank, projects that economic growth will strengthen in the second half of 2025, reaching a range of 4.6-5.4 percent by the end of the year. This anticipated improvement is largely attributed to an increase in government spending.
During a virtual press conference following the BI Board of Governors Meeting on Wednesday, September 17, 2025, BI Governor Perry Warjiyo expressed his optimism.
"With the strengthened synergy between Bank Indonesia and the government's policies, economic growth in the second semester of 2025 is expected to improve, so overall, it will be above the midpoint of the 4.6-5.4 percent range," Perry stated.
In the latter half of 2025, Perry noted that indicators of household consumption remain weak. This condition is influenced by declining consumer expectations, particularly among the lower-middle class, and limited job opportunities.
He also stressed the need to bolster Indonesia's investment by accelerating various government priority programs, including the development of Special Economic Zones (SEZs) across different regions.
Meanwhile, exports are expected to improve, driven by increased shipments of agricultural and manufacturing products. A reduction in import duties on palm oil commodities to India is particularly poised to boost this sector.
"Bank Indonesia will continue to strengthen synergy with fiscal stimuli and the government's real sector policies to drive economic growth while maintaining economic stability," the governor said.
From a fiscal perspective, Perry confirmed that government spending is set to increase in the second half of 2025. This aligns with the implementation of key government projects in areas such as food, energy, defense, and security resilience. The surge in government expenditure is also connected to the newly launched Government's 2025 Economic Policy Package.
To further stimulate economic growth, Bank Indonesia is continuing to blend its monetary, macroprudential, and payment system policies. This includes lowering interest rates, easing liquidity, increasing macroprudential incentives, and accelerating the digitalization of the economy and finance.
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