JAKARTA – Standard Chartered has revised the growth projection for Gross Domestic Products (GPD) of Indonesia from 5.1% to 5%, induced by various global challenges faced recently.

Despite the revision, Standard Chartered mentioned that Indonesia’s GDP is still quite stable this year, continuing the 2024 trend.

Rino Donosepoetro, Cluster CEO for Indonesia and ASEAN Markets of Standard Chartered, mentioned that the bank remains optimistic about this year’s domestic economic growth. This increase will be supported by strong domestic consumption and ongoing infrastructure constructions.

“We believe that these positive fundamental aspects will be able to promote sustainable growth and reinforce investors’ trust in long-term potentials of Indonesia,” said Donosepoetro in a written statement received by IDNFinancials.

The revision by Standard Chartered also considers ASEAN’s economic trend, which is projected to slightly slow down this year.

This slow-down is affected by stricter monetary conditions, plus narrowing external demands, especially for countries relying on exports.

Meanwhile, countries with solid domestic economy like Indonesia is deemed more well-prepared in navigating global challenges.

Therefore, Standard Chartered projects global economic growth at 3.1% in 2025, slightly lower than 3.2% seen last year in 2024.

“Global economic trend is expected to slightly decline in 2025 as uncertainties regarding policies remain high,” said Edward Lee, Chief Economist for ASEAN and South Asia of Standard Chartered, in the same occasion.

Lee further mentioned that high interest and tension with the United States (US) in trading sector will obstruct developing countries’ growth trend. However, once again, for countries with stronger domestic economy like Indonesia, he believes that it will be better shielded from external volatility. (KR/ZH)