ADB Forecasts Indonesian Economy to Grow 5 Percent in 2025

IDXChannel - Indonesian economy is projected to grow 5 percent in 2025, similar with last year, according to the latest forecast by the Asian Development Bank (ADB).

“Economies in developing Asia and the Pacific are supported by strong fundamentals, which are underpinning their resilience in this challenging global environment,” said ADB Chief Economist Albert Park in a media release on Wednesday (9/4/2025).

The growth forecasts were finalized prior to the 2 April announcement of new tariffs by the US administration, so the baseline projections only reflect tariffs that were in place previously.

The Asian Development Outlook (ADO) April 2025 report notes that while economies in the region are resilient, faster and larger-than-expected changes in US trade and economic policies pose risks to the outlook. 

Along with higher US tariffs, increased policy uncertainty and retaliatory measures could slow trade, investment, and growth.

“Rising tariffs, uncertainties about US policy, and the possibility of escalating geopolitical tensions are significant challenges to the outlook," Park said.

"Asian economies should retain their commitment to open trade and investment, which have supported the region’s growth and resilience,” he added. (Wahyu Dwi Anggoro)