Indonesia’s Economy Holds Steady Despite Q1 2025 Slowdown, Says Finance Minister
Indonesia’s economic growth cooled at the start of 2025, but Finance Minister Sri Mulyani Indrawati assured that the country’s fundamentals remain resilient.
According to data from Statistics Indonesia (BPS), the national economy expanded by 4.87% year-on-year in the first quarter of 2025 — the slowest pace since Q3 2021. However, Sri Mulyani emphasized that domestic consumption stayed solid, helped by government stimulus and stable food prices.
“The government continues to maintain optimism by ensuring the state budget (APBN) works effectively to protect the people and support sustainable growth,” Sri Mulyani said in a statement on Tuesday (May 6, 2025).
Household consumption grew by 4.89% (yoy), marking its lowest level since Q4 2023. Meanwhile, government spending contracted by 1.38% in the same period. Despite this, Sri Mulyani noted that the budget still supports priority programs, especially as Indonesia prepares for a new government transition later this year.
She reiterated that the fiscal strategy is designed to safeguard citizens and keep momentum steady even amid external challenges.
