August 21, 2025 | 07:56 pm
TEMPO.CO, Jakarta - Bank Indonesia (BI) projects that Indonesia's economic growth in the second semester of 2025 will strengthen. This economic growth is fueled by solid export performance and increasing domestic consumption.
"In the second semester of 2025, the economic growth is expected to improve, driven by the continued positive performance of exports and the increasing domestic demand, in line with the government's expenditure expansion," stated BI Governor Perry as quoted by Antara on Wednesday, August 20, 2025.
Bank Indonesia's projection is based on the realization of the economic growth in the second quarter of 2025, which was recorded at 5.12 percent annually (year-on-year/yoy). This figure is higher than the achievement in the first quarter of 2025, which was 4.87 percent (yoy).
Bank Indonesia recognizes that economic improvement is occurring evenly from both a sectoral and spatial perspective. According to Perry, all fields of business show improvement, especially in the processing industry, trade, as well as information and communication. Meanwhile, the central bank noted that all regions are experiencing growth, with the highest growth occurring in Java.
With this achievement, BI is confident that the national economic growth throughout 2025 will exceed the midpoint of the set target. "With the realization of the second quarter of 2025, overall economic growth in 2025 is estimated to be above the midpoint of the range of 4.6 percent to 5.4 percent," said Perry.
Perry outlined three main factors that support this optimism. First, the improved performance of exports supported by expanding market share to various countries, as well as the potential reduction of pressure from lower reciprocal tariffs from the United States. Consequently, exports from the mining, palm oil plantation, agriculture, and fisheries sectors can still be relied upon.
Second, from a domestic perspective, Bank Indonesia predicts that government spending will be expansive in the second half of this year, thus driving demand. Third, the investment trend also continues to increase, especially in export-oriented sectors, transportation, warehousing, as well as innovation in strategic projects.
In addition to those three factors, Perry said economic growth is driven by the BI's accommodating policy mix, which includes interest rate cuts, increased liquidity, and expansion of macroprudential policies, as well as accelerated digitalization. The combination of these drivers emphasizes the importance of cooperation between fiscal and monetary authorities. "That's why the synergy and coordination of government and BI policies continue to be strengthened," he added.
Perry is confident that the government will continue to increase spending as fiscal stimulus. Meanwhile, BI will continue its policies through interest rate cuts, liquidity expansion, macroprudential incentives, financial digitalization, and deepening of the money market, all aimed at driving higher economic growth.
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