JAKARTA: Indonesia’s economic growth this year will likely stay around 5 per cent despite trade tensions, its finance minister said on Thursday (Apr 24), stressing a government delegation was still negotiating terms with Washington to try to avoid high tariffs.
The minister’s outlook is roughly the same growth pace as last year’s 5.03 per cent. The government’s target is 5.2 per cent this year and President Prabowo Subianto has pledged to lift growth to 8 per cent by 2029.
In its latest world economic outlook, the IMF downgraded Indonesia’s economic growth estimate for 2025 to 4.7 per cent from 5.1 per cent.
Sri Mulyani Indrawati’s remarks came at an online press conference of Indonesia’s stability board, which consists of its finance minister, central bank governor, head of financial services authority and head of deposit insurance corporation.
The minister and Bank Indonesia Governor Perry Warjiyo were in Washington to attend IMF-World Bank meetings.
A delegation led by chief economic minister Airlangga Hartarto was also in the US capital trying to conclude trade talks within 60 days since its Apr 17 meetings with US officials including the US Trade Representative.
In those meetings, Indonesia has offered to buy more American products, such as liquefied petroleum gas and wheat, as well as cut its own non-tariff barriers so that the United States would not apply a 32 per cent tariff on Indonesia’s exports, which include electronics, apparel and footwear.
“The government will actively conduct early mitigation, including communicating with the US government and, as instructed by the president, will continue deregulation efforts to reduce trade barriers,” Sri Mulyani said.
“Efforts will also continue to protect domestic demand,” she added.
