Indonesia
WORLD BANK UPGRADES INDONESIA’S GROWTH OUTLOOK AMID GLOBAL UNCERTAINTY
The World Bank has raised its projection for Indonesia’s economic growth, forecasting the economy to expand by 5 percent in 2025–2026 and further to 5.2 percent in 2027, an improvement from its June 2025 estimates of 4.7 percent, 4.8 percent, and 5 percent respectively. According to the December 2025 Indonesia Economic Prospects (IEP) report, the country’s resilience amid global uncertainty is reflected in steady GDP growth outperforming many other middle‑income countries. The bank attributes this stronger outlook to rising investment and solid export performance, which are expected to offset slightly weaker private consumption. Public investment through the Danantara program, supportive monetary policy to stimulate private‑sector credit growth, stable foreign direct investment inflows, and low inflation combined with fiscal stimulus are all set to bolster economic expansion. However, the report highlights persistent labor‑market challenges that continue to pressure household welfare. Employment grew by 1.3 percent between August 2024 and August 2025, but most new jobs emerged in lower‑wage sectors. Real wages have trended downward since 2018, while mid‑skilled employment has contracted relative to both lower‑ and higher‑wage positions, weighing on household consumption. To address these structural issues, World Bank Country Director, Carolyn Turk, emphasized that Indonesia must pair macroeconomic stability with deeper reforms, particularly through expanding digital infrastructure such as broadband networks, data centers, and improved regulatory frameworks. Strengthening the digital ecosystem, Turk noted, would boost productivity, generate higher‑quality jobs—especially for youth and women in underserved areas—and accelerate long‑term growth.Source: https://rri.co.id/en/business/2045082/world-bank-upgrades-indonesia-s-growth-outlook-amid-global-uncertainty (ICE GIACARTA)
Fonte notizia: rri.co.id, 16 December 2025
