Indonesia’s economy is projected to grow by only 4.91% in Q1 2025, a slowdown from both the previous quarter and the same period last year. The deceleration is driven by weakening household consumption (expected at 4.5% YoY), a sharp contraction in government spending (-2.88% YoY), and global headwinds dampening investment and exports. While real investment grew by 15.9% and exports maintained momentum through mineral and manufacturing sectors, rising imports (+5.07%) suggest that domestic demand remains under pressure. Economists attribute the softening growth to fiscal efficiency measures, delayed execution of priority programs like the Free Nutritious Meals initiative, and external uncertainties such as US trade tariffs. Experts stress the need for strong policy coordination between fiscal and monetary authorities and recommend proactive trade diplomacy to protect Indonesia’s economic resilience and industrial competitiveness.Source: https://jakartaglobe.id/business/indonesias-q1-economic-growth-projected-to-fall-below-5 (ICE GIACARTA)

Fonte notizia: Jakarta Globe, 4 May 2025