IMF Projects Indonesia's 2025 Economic Growth Below 5%

Economics & Macro

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Adi Ahdiat 23/04/2025 15:40 WIB

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According to IMF projections, Indonesia's economic growth in 2025 will only reach 4.7%, hampered by the impact of the trade war triggered by the US's reciprocal tariff policies.

Indonesia's Economic Growth Projections according to the IMF (2021-2025)*

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IMF Projects Indonesia's 2025 Economic Growth Below 5%

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Indonesia's Economic Growth Projections according to the IMF (2021-2025)*

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In the April 2025 edition of the *World Economic Outlook* (WEO), the International Monetary Fund (IMF) projected that Indonesia's economy this year will only grow by 4.7%.

This projection is lower than the WEO's January 2025 edition. Previously, the IMF had predicted that Indonesia's economic growth could reach 5.1%.

This change in projection coincides with the dynamics of the global situation.

In early April 2025, the President of the United States (US), Donald Trump, implemented a new import tariff policy, triggering a "trade war." The IMF assessed that this could impact a decrease in economic growth rates.

"The downward revision is broadly based across countries, largely reflecting the direct impact of the new trade policy measures, as well as the indirect impact from heightened uncertainty and deteriorating sentiment," stated the IMF in the April 2025 edition of the *World Economic Outlook*.

According to IMF records, as of April 14, 2025, the US imposed effective import tariffs of around 25% on its global trading partners, a significant increase compared to the beginning of 2025, when the average was below 3%.

Specifically for China, until April 16, 2025, the US imposed tariffs in the range of 145-245%, after China implemented a 125% tariff on the US.

"Rising trade tensions and high levels of policy uncertainty are expected to significantly impact global economic activity," said the IMF.

"Going forward, the world needs clarity and coordination. Countries must work constructively to promote a stable and predictable trading environment, facilitate debt restructuring, and address common challenges," it continued.

Editor : Adi Ahdiat

"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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IMF Projects Indonesia's 2025 Economic Growth Below 5%

IMF Projects Indonesia's 2025 Economic Growth Below 5%

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IMF Projects Indonesia's 2025 Economic Growth Below 5%

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