#Macroeconomics
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.
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.
Rupiah under threat, but strategic moves with China and Japan “could offer lifeline”
The recent U.S. tariff policy under U.S. President Donald J. Trump's administration that targets a number of trading partner countries, such as Indonesia, on Wednesday, April 4, 2025, causes the rupiah exchange rate against the U.S. dollar to plummet.
Experts: U.S. tarriffs could jeopardize Indonesia's IT sector, weaken rupiah
Director for Digital Economy at the Center for Economics and Law Studies (CELIOS), Nailul Huda, has assessed that the impact of the U.S. reciprocal tariff policy has the potential to weaken the telecommunications and information technology (IT) sector in Indonesia.
World Bank highlights Indonesia's low tax revenue
The World Bank has highlighted Indonesia's low tax revenue performance − apparently the lowest in the world − in a report entitled "Estimating Value Added Tax (PPN) and Corporate Income Tax (PPh) Gaps in Indonesia" released on March 2, 2025.