INDONESIAN ECONOMIC INDICATORS

Indonesia’s economy is facing the impact of global uncertainty due to the US reciprocal tariff policy. Indonesia’s economy in Q1/2025 managed to grow by 4.87% YoY amidst increasing global uncertainty, lower than the Q4/2024 figure of 5.02% YoY. GDP has been mostly supported by household consumption in line with increased community spending during the national religious holiday period.

The government and Bank Indonesia (BI) have succeeded in maintaining an inflation rate of 1.57% YoY in 2024, within the target range of 2.5% with a tolerance of approximately 1%. Inflation is expected to remain in line in early 2025, bringing a degree of economic stability and is expected to help drive strong economic growth over the remainder of the year.

The rupiah exchange rate has strengthened by 1.90 ptp against the US Dollar in May 2025 and has remained strong against the currencies of other developed countries. Overall, the Rupiah’s movement is within a range that is in line with domestic economic fundamentals.