Markets and Finance

Government debt projected to reach 40.1 percent of GDP in 2025: World Bank

Indonesia’s public debt is expected to rise significantly to 40.1 percent of gross domestic product (GDP) in 2025, up from an estimated 29.2 percent in 2024, the World Bank said in its April 2025 report. 

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Auto industry faces sales slump in 2025 amid EV transition, weak consumer demand

As 2025 unfolds, Indonesia's automotive industry is facing a series of challenges that have led to a decline in domestic four-wheeled vehicle sales, reflecting broader economic and structural shifts within the sector.

Government's trade strategy in the spotlight as current account deficit may widen

The International Monetary Fund (IMF) has projected that Indonesia's current account deficit will widen to 1.5 percent of Gross Domestic Product (GDP) in 2025 and increase to 1.6 percent in 2026, signaling a weakening trend in the country's external resilience amid the government's strategy of increasing imports from the United States in order to ease President Donald Trump's trade tariffs.

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BCA CEO stresses effects of global uncertainty, Trump's policy as Stocks corrected

President Director of PT Bank Central Asia (BCA) Jahja Setiaatmadja responded to the recent downward trend in banking sector stock prices, citing correction has not only been experienced by BCA shares, but also other large banks − both state-owned and private.

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PAJK touted as key to inclusive, safer investment via People's Credit Bank integration

The Indonesian Fintech Association (AFTECH) assesses that Financial Services Aggregation Providers (PAJK) can encourage financial inclusion while also being an alternative investment for the community amidst fluctuating investment market conditions, such as through a digital platform connected to the People's Credit Bank (BPR).

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BI cuts 2025 growth below 5.1 percent outlook amid escalating U.S.-China trade tension

The Indonesian Central Bank (BI) has cut its projection for Indonesian economic growth in 2025 to be below 5.1 percent amid uncertainty due to the U.S.-China trade war.

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Indonesia and Qatar set up US$4 billion joint investment fund

Indonesia and the Qatar Investment Authority (QIA) have agreed to establish a US$4 billion joint investment fund as a direct result of President Prabowo Subianto’s recent visit to Qatar. 

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BI maintains benchmark interest rate amid threat of global economic slowdown

The Board of Governors Meeting of the Indonesian Central Bank (BI) on April 22-23, 2025 decided to maintain the benchmark interest rate (BI Rate) at 5.75 percent over consideration of increased uncertainty amidst U.S.-China trade tariffs war and threat of slowing global economic growth.

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Economists praise Indonesia’s trade talks with U.S.

Indonesia’s recent negotiations with the United States are seen as a strategic move aimed at safeguarding national economic interests rather than signaling a geopolitical shift away from China, said Fithra Faisal Hastiadi, Chief Economist at Samuel Sekuritas Indonesia.

AdaKami praises adjustment of “Pinjol” interest rate set by OJK

An industry player has praised the Financial Services Authority (OJK) for adjusting the maximum interest rate on consumer fintech online lending platforms (pinjol) − with maximum daily interest at 0.3 percent for tenors under six months and 0.2 percent for tenors over six months − that will take effect on January 1, 2025. 

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Indonesia eyes global investors to build East Halmahera EV ecosystem after LG exit

Minister of State-Owned Enterprises (SOEs), Erick Thohir, has revealed of the government’s plan to offer an investment project for the electric vehicle (EV) battery industry ecosystem after LG Energy Solution left the project.

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U.S.’s attack on RI’s payment system sparks pushback over sovereignty, innovation

The U.S. government’s criticism on the Indonesian standard quick response payment system (QRIS) and the national payment gateway (GPN) has drawn strong resistance at home, citing market preference on more flexible system away from conventional credit card payment.

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