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Sri Mulyani Opens Up! This Is The Current Condition Of The Indonesian Economy

Finance Minister Sri Mulyani is optimistic that Indonesia's economic growth will be positive in the first quarter of 2025 amidst the volatile global economic conditions. Sri Mulyani's optimism is in contrast to the OECD's projection that sees a slowdown in Indonesia's economic growth. 

"The three important components of consumption, investment, and exports are all good. Growth in Q1 will be maintained and we will continue to maintain it until the end of the year," said Sri Mulyani on Tuesday (3/18/2025). 

She explained that there are three indicators that will drive Indonesia's economic growth. 

The first is Indonesia's trade balance in February which had a surplus of US$3.12 billion. This achievement completes the surplus trend for 58 months since the Covid-19 era. 

The second is the manufacturing PMI activity which is in the expansion zone from previous contraction. 

"Second, PMI at 53.6. I said yesterday PMI 53.6 is a recovery from a position that was previously below 50. Previously contracted to expansive. This is measured by the PMI index showing good activity," said Sri Mulyani. 

Third is investment that is expected to come in from good consumption conditions and expansive manufacturing. 

Meanwhile, the Organization for Economic Cooperation and Development (OECD) has lowered its projection for Indonesia's economic growth this year to 4.9% in 2025. This projection was revealed in the latest OECD Economic Outlook report, Interim Report March 2025 'Steering to Uncertainty' which was released on March 17, 2025. 

Meanwhile, in the OECD report in December 2024, Indonesia is still expected to grow 5.2% in 2025. The slowdown in Indonesia's economic growth is in line with economic disruption in several other developing countries, especially those in the G20 group. However, the OECD sees the economic slowdown in Indonesia will not be as significant as China. 

"The slowdown is projected to be less pronounced in India and Indonesia, with both economies experiencing some support for export growth as they attract new business diverted from exporting countries facing sharper tariff increases," the OECD wrote in its report, quoted Tuesday (3/18/2025). 

Tag: Economic Growth Indonesian Economy Sri Mulyani