FX.co ★ OECD Revises Up Indonesia’s 2025 GDP Forecast to 4.9%

The Organisation for Economic Co-operation and Development (OECD) announced on Tuesday an upward revision of Indonesia’s GDP growth forecasts for 2025 and 2026, now anticipating a growth rate of 4.9%. This marks an increase of 0.2 percentage points for 2025 and 0.1 percentage points for 2026 compared to its June projections. The revised outlook is attributed to more accommodating monetary policies and heightened public investment, as highlighted in the OECD’s Interim Economic Outlook. Despite this positive adjustment, these projections still fall short of the Indonesian government’s own estimates, which predict growth rates of 5.2% for 2025 and 5.4% for 2026. Recent data indicates Indonesia's economy expanded by 5.12% in the second quarter of 2025, achieving its most rapid growth since the second quarter of 2023. This acceleration was bolstered by robust fixed investments and private consumption. In the meantime, Bank Indonesia has implemented a total interest rate reduction of 150 basis points since September 2024, lowering the benchmark rate to its lowest since October 2022.