JAKARTA – The International Monetary Fund (IMF) and World Bank have projected Indonesia's economic growth for this year to be lower than the government's expectations.

In its January 2025 World Economic Outlook report, the IMF did not revise its forecast for Indonesia's economic growth, maintaining its October 2024 prediction of 5.1%. Meanwhile, the global economy is expected to remain stable at 3.3%, according to the report.

Similarly, the World Bank’s January 2025 Global Economic Prospects (GEP) report projects global economic growth to reach only 2.7%, with Indonesia’s economy forecasted to grow by just 5.1%.

Perry Warjiyo, Governor of Bank Indonesia (BI), stated that the lowered forecast aligns with the decline in consumer purchasing power. “Household consumption is weak, particularly among the lower-middle income group,” Warijyo said in a press conference a few days ago.

On the other hand, Coordinating Minister for Economic Affairs Airlangga Hartarto acknowledged that several institutions have reduced their projections from 5.2% to 5.1%. “But the government remains optimistic, after all, it's still January,” Hartarto remarked. (KR/ZH)