FX.co ★ Indonesia Projects 6% GDP Growth Following Liquidity Injection

Indonesia's Finance Minister anticipates a 6% economic growth next year, fueled by a recent liquidity injection of IDR 200 trillion, the majority of which has already been distributed as loans by the banks. During a conference on Thursday, Purbaya Yudhi Sadewa indicated that the positive economic effects of last month's injection are expected to become evident in the fourth quarter of this year, with growth predicted to exceed 5.5%, before accelerating to 6% in the following year. A rapidly expanding economy, coupled with a favorable investment climate, is likely to attract investors to Indonesia, he noted, as mentioned in a report by Reuters. In September, the government introduced a new array of incentives aimed at boosting economic growth, succeeding the IDR 24.44 trillion in stimulus funding that was announced in May. Last month, Indonesia’s central bank forecasted that by 2025, GDP growth would surpass the midpoint of its projected target range of 4.6%–5.4%. To support this forecast, Bank Indonesia has cumulatively reduced interest rates by 150 basis points since last September. Recent statistics indicated that GDP grew by 5.12% in the second quarter of 2025.