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7 May 2025

International Economy

Indonesia’s 1Q25 economy grew at the lowest rate in three years of 4.87%, with full-year growth projected to stand below 5% (Business Brief No.4152 Full Ed.)

คะแนนเฉลี่ย
  • Indonesia’s 1Q25 economic growth slowed to 4.87 percent YoY, marking the weakest quarterly expansion since 3Q21. The slowdown was prompted by sluggish domestic consumption and a contraction in government spending.
  • KResearch expects Indonesia’s 2025 economic growth to fall below 5 percent, with the risk of slowing to 4.5 percent if negotiations to mitigate the impact of US reciprocal tariff policy fail to progress.
  • While the economy still requires additional stimulus, monetary easing faces constraints from the Indonesian Rupiah’s depreciation and capital outflows, forcing Bank Indonesia (BI) to delay its rate cuts. Therefore, the government’s main challenge for the rest of this year lies in carefully deploying available policy tools to sustain economic stability.

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International Economy