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2025-09-17 11:32:34
[Bank of America Securities: Indonesia accelerates fiscal measures to support economic growth] Bank of America Securities said that if Indonesia's recent fiscal measures can be effectively implemented, it may raise its forecast for Indonesia's economic growth. Currently, Bank of America Securities expects Indonesia's economic growth rate to be 5% in 2025 and 5.2% in 2026. Economists Kai Wei Ang and Rahul Bajoria said in a report that a special ministerial team is accelerating the implementation of flagship projects while launching fiscal measures worth 16 trillion rupiah in the fourth quarter to support low-income households, gig economy workers and the tourism industry. The Ministry of Finance has allocated 200 trillion rupiah in excess cash to five state-owned banks. Combined with the Indonesian central bank's interest rate cuts, this may reduce loan interest rates, but as businesses remain cautious, overall loan growth may take some time to improve. They added that plans to establish a separate tax agency are moving forward and fiscal legislation may be updated next year, which makes investors and credit rating agencies closely watch fiscal developments.
