Finance Minister Sri Mulyani Indrawati has projected that Indonesia’s economy will grow by around 5% in 2025, slightly below the 5.2% target set in the state budget. During a meeting with the House of Representatives’ Budget Committee, she explained that the government would implement various measures to keep growth near this level, including counter-cyclical fiscal strategies. Key initiatives under President Prabowo’s administration—such as the Free Nutrition Meals (MBG) program, Housing Financing Liquidity Facility (FLPP), Red and White Cooperatives, and People’s Schools—are expected to roll out in the second half of 2025 to stimulate economic activity. 

These programs are intended to create a multiplier effect across the economy. In addition, the government aims to keep inflation low to protect household purchasing power while sustaining investment and export momentum. However, amid global economic uncertainties, several international institutions have revised Indonesia’s growth outlook. The World Bank has downgraded its forecast from 5.1 to 4.7%, and the International Monetary Fund (IMF) has followed suit with the same revised figure, reflecting growing caution about global and regional economic headwinds affecting Indonesia’s outlook.

Source: 
https://en.antaranews.com/news/363353/indrawati-forecasts-5-percent-national-economic-growth-in-2025