JakartaGlobe-June 24
The World Bank has upgraded Indonesia’s expected gross domestic product (GDP) growth to an average of 5.1 percent per year from 2024 to 2026, up from the earlier projection of 4.9 percent for both 2024 and 2025. According to the World Bank, Indonesia’s economy is expected to maintain a steady growth trajectory in the upcoming years, driven by increased public spending, rising business investments, and stable consumer demand. This outlook holds despite challenges such as a declining commodity boom, greater fluctuations in food and energy costs, and rising geopolitical uncertainties. “Indonesia’s strong economic performance largely stems from the government’s robust macroeconomic policies, which have bolstered investment attraction,” said Carolyn Turk, World Bank Director for Indonesia and Timor-Leste in a statement on Monday. “It is crucial to uphold prudent, credible, and transparent macro policies while creating fiscal room for prioritizing expenditures on social protection, human capital, and infrastructure.” The Indonesian government and parliament are targeting economic growth between 5.1 percent and 5.5 percent in 2025, surpassing the 5.05 percent recorded in 2023 and the 5.2 percent target for the current year. The World Bank report highlights that rising food prices contributed to headline inflation increases this spring, with consumer prices rising 2.8 percent year-over-year in May, up from a 2.6 percent increase in January. Adverse climate conditions led to reduced domestic rice harvests, impacting food prices more broadly. Read more at: https://jakartaglobe.id/business/world-bank-upgrades-indonesias-gdp-growth-to-51-percent
