Indonesia: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Indonesia

The 2025 Article IV Consultation highlights that the Indonesian economy has shown resilience amid adverse shocks. Growth is expected to remain steady at 5.0 percent in 2025 and 5.1 percent in 2026, despite a challenging external environment, reflecting support from fiscal and monetary policies. Indonesia remains a global bright spot, with strong economic growth amid a challenging external environment, and with inflation expected to remain comfortably in the target range. A well-calibrated policy mix can support the economy; protecting Indonesia’s hard-earned credibility and policy space remains crucial in a world of heightened external uncertainties. Bold structural reforms, including building on Indonesia’s significant efforts to foster trade agreements, would boost the business climate, private sector-led growth and productivity, enabling a jobs-rich and sustainable path to realizing Indonesia’s high-income potential. Structural reforms and deregulation efforts, including deepening trade integration through new agreements and reducing barriers, would sustainably boost long-term growth.