Indonesia’s economy is estimated to have grown by 5.2% in 2025, in line with the government’s target, Finance Minister Purbaya Yudhi Sadewa said at a meeting of the Financial System Stability Committee on January 27. Growth momentum was expected to strengthen in the fourth quarter, supported by higher domestic demand and improving business confidence. For 2026, the government maintains a growth target of 5.4% for the USD 1.4 trillion economy.
Purbaya noted that the global environment remains cautious. The International Monetary Fund revised its global growth projection for 2026 to 3.3%, compared with 3.2% in 2025. Several advanced economies continue to face weaker labor markets, softer domestic demand, and declining exports. Against this backdrop, Indonesia’s outlook is viewed as relatively resilient.
By December 2025, broad money supply rose 9.6% year on year, reflecting solid financial activity. The increase was driven mainly by stronger bank lending and credit financed sales, indicating active borrowing and spending by businesses and households. These trends suggest continued confidence in economic stability.
The government is advancing downstream investment and improving the ease of doing business through the Task Force for the Acceleration of Government Strategic Programs. Bank Indonesia Governor Perry Warjiyo said the central bank will monitor conditions for possible monetary easing, while maintaining exchange rate stability. The benchmark 7-day reverse repurchase rate remains at 4.75%, unchanged since September, following cumulative cuts of 150 basis points between September 2024 and September 2025.
(Source: Business Indonesia)
