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2025-09-19 11:08:04
[Fitch: Indonesia's economic growth may slow this year] BMI, a subsidiary of Fitch Solutions, said in a report that Indonesia's economic growth is expected to slow slightly from 5.03% in 2024 to 4.9% in 2025, and then reach 5.0% in 2026. BMI said that growth headwinds include US tariffs and President Prabowo Subianto's populist policies, which may put pressure on consumer confidence, investment and the garment industry. The agency said that limited fiscal space may limit the government's stimulus measures, but the 125 basis point interest rate cut by the Indonesian central bank and further interest rate cuts expected in the future may provide some support. BMI added that despite these challenges, Indonesia's low exposure to the United States and stable historical growth suggest that the 5.0% growth forecast for 2026 is achievable.
