FX.co ★ World Bank Revises Indonesia's 2025 GDP Outlook Upward to 4.8%

The World Bank has recently adjusted its forecast for Indonesia's GDP growth in 2025, increasing it to 4.8% from the previously projected 4.7%, as outlined in its East Asia and the Pacific Economic Update. Despite this optimistic revision, the organization has issued a warning regarding the sufficiency of current government strategies to adequately sustain long-term economic growth. Last month, Indonesia's central bank expressed confidence that economic growth would surpass the midpoint of its 4.6%–5.4% target range. In alignment with this positive outlook, the central bank has implemented a cumulative reduction of interest rates by 150 basis points since last September. Additionally, in September, the Indonesian government introduced a series of incentives and programs designed to boost economic growth, curb unemployment, and enhance the investment climate. These initiatives accompany the Rp24.44 trillion (approximately US$1.5 billion) in stimulus funding announced in May. Recent figures reveal that Indonesia's economy expanded by 5.12% in the second quarter of 2025, marking the fastest growth rate since the second quarter of 2023.