FX.co ★ Indonesia 2025 GDP Growth Seen at 5.2%, Meets Target

Indonesia's economy is projected to achieve its 5.2% growth target for 2025, even after the significant damage from last year's floods. The Finance Minister, speaking on Tuesday, noted that growth likely accelerated in the fourth quarter. According to Statistics Indonesia, the third quarter GDP rose by 5.04%, down from the 5.12% growth observed in the second quarter, which marked the fastest expansion since the second quarter of 2023. The fourth quarter data is set to be released on February 5. The Indonesian government has also reaffirmed its GDP growth target for 2026 at 5.4%. Bank Indonesia (BI) Governor Perry Warjiyo stated that the central bank will continue to assess potential interest rate cuts to bolster economic expansion. In January 2026, BI maintained its key interest rate at 4.75% for the fourth time in a row, aiming to stabilize the rupiah. Since September 2024, the central bank has implemented a cumulative reduction of 150 basis points, bringing the rate to its lowest since October 2022, in an effort to support economic growth.