Jakarta (VNA) – Indonesia’s economy remains resilient amid global uncertainties, according to World Bank Country Director for Indonesia and Timor-Leste Carolyn Turk.
Speaking at the launch of the Indonesia Economic Prospects June 2025 edition on June 23 in Jakarta, Turk noted that Indonesia’s gross domestic product (GDP) expanded 4.9% in the first quarter of 2025 compared to the same period last year.
Turk attributed this performance to Indonesia’s strong macro-economic fundamentals, such as low inflation, ample financial reserves, and consistent fiscal discipline. Indonesia’s current economic performance reflects strong foundations and prudent policy responses, she stated.
The World Bank projects Indonesia’s economy will expand at an average annual rate of 4.8% between 2025 and 2027. This growth could reach 5.5% by 2027 if reform policies continue to be effectively implemented.
The report also notes that the benefits of recent growth have been felt most by low-income groups, while consumption among the middle class has shown signs of slowing.
Turk praised the Indonesian government’s recent initiatives, such as the launch of Danantara Indonesia and its plan to build three million housing units per year. With an annual public investment of 3.8 billion USD, the housing programme is expected to generate 2.3 million jobs and attract an estimated 2.8 billion USD in private investment, while enhancing living standards nationwide.
The official cautioned that risks remain, including challenges in global trade and volatility in commodity prices. Nevertheless, she expressed her optimism that the government’s continued focus on deregulation, trade reform, and digital transformation will help Indonesia overcome challenges and maintain sustainable growth./.
