Bank of Indonesia published a press release welcoming the International Monetary Fund’s 2025 Article IV Consultation assessment, which concludes that Indonesia is maintaining solid growth despite a challenging external environment, supported by inflation that remains comfortably within the target range and a resilient financial sector. The IMF Board also indicated that further monetary policy easing through 2025 would be needed to support economic growth. The IMF projected GDP growth of 5.0% in 2025 and 5.1% in 2026, while highlighting downside external risks from global trade tensions, heightened uncertainty and global financial market volatility. Recommended policy actions included data-dependent monetary and exchange rate policies to maintain stability, gradual normalisation of accommodative macroprudential policies as credit recovers, and faster structural reforms to strengthen governance, trade integration and the investment climate. The assessment also noted progress in financial market deepening and monetary policy transmission, the role of a stronger regulatory and supervisory framework in supporting resilience, and commitment to careful fiscal management supported by credible fiscal rules alongside the ‘Golden Vision’ structural reform agenda to become a high-income country by 2045. Bank of Indonesia said the IMF’s outlook aligns with its own assessment and that it will continue, with the Government and other relevant authorities, to strengthen fiscal and monetary policy coordination, maintain macroeconomic and financial system stability, and accelerate strategic structural reforms.

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