#Macroeconomics
Lawmakers urge investment diplomacy as Trump slaps 32 percent tariffs on RI goods
The House of Representatives (DPR) has responded to U.S. President Donald Trump’s decision to impose a 32 percent import tariff on Indonesian products by urging the government to pursue strategic investment diplomacy, particularly by offering to establish manufacturing operations within the United States.
House approves 2026 State Budget deficit projection at 2.48–2.53 percent of GDP
Finance Commission XI of the House of Representatives (DPR) has approved the government’s projected budget deficit for the 2026 draft state budget (RAPBN), setting it between 2.48 percent and 2.53 percent of gross domestic product (GDP), lower than the revised 2025 outlook of 2.78 percent.
House approves 2026 economic growth target of 5.2–5.8 percent
Finance Commission XI of the House of Representatives (DPR) has approved the government's proposed 2026 economic growth target, setting the figure between 5.2 and 5.8 percent, higher than the 5 percent projected for 2025.
Jakarta composite index projected to reach 7,300 by year-end amid recovery signals
The Indonesian Composite Stock Index (IHSG) is projected to reach 7,300 by the end of 2025, with signs of recovery expected to emerge in the second quarter, according to BRI Danareksa Sekuritas.
House, Finance ministers discuss 2026 Budget assumptions amid fiscal pressure
Finance Commission XI of the House of Representatives (DPR) held a hearing on late Thursday, July 3, 2025, with key economic leaders to review macroeconomic assumptions underlying the 2026 State Budget (APBN).
Government eyes up to 5.8 percent economic growth in 2026
Minister of Finance Sri Mulyani Indrawati revealed on Tuesday, May 20, 2025 the government’s 2026 macroeconomic framework and fiscal policy guidelines (KEM PPKF), projecting national economic growth to reach between 5.2 and 5.8 percent next year.
Indonesian economy under pressure, growth slows to 4.87 percent in Q1 2025
Indonesia’s economy opened 2025 facing mounting domestic and international challenges, with growth slowing to 4.87 percent in the first quarter (Q1) − down from 5.11 percent in the same period last year.
RI seeks fairer U.S. trade terms as Prabowo pushes for economic diplomacy
President Prabowo Subianto summoned Coordinating Minister for the Economy Airlangga Hartarto on Monday, April 28, 2025 to discuss the progress of Indonesia's economic negotiations with the United States.
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.
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).
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.
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.