Indonesia GDP growth to slow to 4.7% in 2025: OECD

Indonesia’s economy is forecast to grow by 4.7% in 2025 and 4.8% in 2026, slightly below previous projections, due to weaker external demand and domestic policy uncertainty, the OECD said in its June 2025 Economic Outlook. Growth will be supported by easing financial conditions and low inflation, but export momentum is expected to soften amid global trade tensions. Inflation is projected to rise to 2.3% in 2025 and 3.0% in 2026, partly due to currency depreciation. The fiscal stance is expected to remain neutral as the government balances expanded social spending with cost controls. Key downside risks include a potential slowdown in China and capital outflows, while sovereign wealth fund execution could unlock private investment and boost infrastructure development.