Indonesia’s Economic Resilience Amid Global Challenges: A Closer Look at 2025 Projections
Jakarta, January 31, 2025 – Coordinating Minister for Economic Affairs Airlangga Hartarto has outlined the risks facing President Prabowo subianto’s government, emphasizing the impact of global dynamics on Indonesia’s economic trajectory. Speaking after the High-Level Meeting of the Central Inflation Control Team (HLM TPIP), Hartarto highlighted key challenges, including commodity price volatility, high interest rates, and the influence of U.S. trade policies, often referred to as trump 2.0.
“several risks will still be faced, such as commodity price volatility and relatively high interest rates,” Hartarto stated. He also pointed to climate change as a critical factor affecting food and energy sustainability. “This is something we need to pay attention to,especially in the global economic projections for 2025,which are estimated at around 3.2 percent, below the past average,” he added.
According to the International Monetary Fund’s (IMF) World Economic Outlook (WEO) update, global economic growth for 2025 and 2026 is projected at 3.3 percent, below the historical average of 3.7 percent from 2000 to 2019. Despite thes challenges, Hartarto expressed confidence in Indonesia’s economic resilience.
Indonesia has achieved a important milestone, ranking 8th globally in purchasing power parity (PPP)-adjusted Gross Domestic Product (GDP). “Higher than Italy, and France, and this is a significant achievement,” Hartarto remarked. The IMF recorded Indonesia’s PPP-adjusted GDP at $4.66 trillion in 2024, surpassing countries like Brazil and the UK.
Global GDP Rankings Based on PPP (2024)
| rank | Country | GDP (Trillion USD) |
|———-|—————|————————|
| 1 | China | 37.07 |
| 2 | United States | 29.17 |
| 3 | India | 16.02 |
| 4 | Russia | 6.90 |
| 5 | Japan | 6.57 |
| 6 | Germany | 6.02 |
| 7 | Brazil | 4.70 |
| 8 | Indonesia | 4.66 |
| 9 | France | 4.36 |
| 10 | United Kingdom| 4.28 |
Hartarto emphasized the importance of maintaining economic growth, notably in the face of global uncertainties. “Certainly, Indonesia must continue to maintain economic growth,” he said.
As Indonesia navigates these challenges, the government remains focused on leveraging its economic strengths while addressing vulnerabilities. For the latest updates on Indonesia’s economic developments, stay tuned to Tempo’s coverage on Google News.Editor’s Choice: Bali Police Arrest Russian National Suspected of Crypto asset Robbery
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