Inp.polri.go.id - Jakarta. Despite global volatility, Indonesia’s economy grew by 4.9% year-on-year in Q1 2025, driven by sound macroeconomic policies, low inflation, and strong fiscal discipline, according to the World Bank.
“Indonesia’s current performance reflects strong fundamentals and good policy responses,” said Carolyn Turk, the World Bank Country Director for Indonesia and Timor-Leste, during the launch of the Indonesia Economic Prospects report on Monday (23/6/2025), as quoted by antaranews.com.
Growth has primarily benefited low-income groups, though middle-class consumption remains subdued. The World Bank forecasts Indonesia’s economy to grow at an average of 4.8% annually from 2025 to 2027, with potential to reach 5.5% by 2027 through deregulation, trade reform, and digitalization.
Public housing initiatives and the launch of the sovereign wealth fund, Danantara Indonesia, are expected to spur investment. With a goal to build 3 million homes annually, the program could create 2.3 million jobs and attract $2.8 billion in private investment, supporting inclusive growth.
(mg/inp/pr/rs)