ADB Projects 5% Economic Growth, 2% Inflation for Indonesia in 2025

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Erlina Fury Santika 10/04/2025 15:10 WIB

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The Asian Development Bank (ADB) predicts that Indonesia's economic growth will reach 5% in 2025. Simultaneously, inflation is projected to be 2%.

Indonesia's Economic Growth and Inflation: ADB Version (2023-2026*)

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Indonesia's Economic Growth and Inflation: ADB Version (2023-2026*)

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The Asian Development Bank (ADB) projects Indonesia's economic growth to stabilize at 5% in 2025. This figure is predicted to slightly increase to 5.1% in 2026.

According to ADB economists, this growth is influenced by government economic policies and several new programs.

"More accommodative fiscal and monetary policies will support growth, along with the implementation of the government's new priority programs," ADB wrote in a report cited on Thursday (April 10, 2025).

While global economic conditions remain volatile, the ADB believes that domestic demand in Indonesia will likely remain the backbone of growth in 2025 and 2026, supported by sustained macroeconomic stability and increased social spending.

The ADB also predicts that domestic investment will increase further in 2026. "Empowering the young but vulnerable middle class is a key challenge in the medium term," the ADB stated.

Inflation is projected to reach 2% in both 2025 and 2026. The ADB notes that this figure remains within the official target range of the government and the central bank (Bank Indonesia) of 2.5% plus or minus 1%.

"Risks to price stability remain low as good weather supports the recovery of the agricultural sector," ADB wrote.

The ADB added that in January-February 2025, government-regulated prices decreased, mainly due to electricity tariff discounts for the first two months, resulting in overall deflation of 0.1% year-on-year in February.

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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ADB Projects 5% Economic Growth, 2% Inflation for Indonesia in 2025

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