Indonesia's Economy Remains Resilient Despite Global Headwinds

June 23, 2025-Housing Sector Reform to Boost Jobs, Investment, and Growth
Indonesia's economy grew at an annual rate of 4.9 percent in the first quarter of 2025, despite challenging global conditions, according to People-First Housing: A Roadmap from Homes to Jobs to Prosperity in Indonesia, the June 2025 edition of the Indonesia Economic Prospects (IEP) report.

Robust macroeconomic policies, including low inflation, adequate financial buffers, and strict adherence to fiscal rules, have been instrumental in bolstering Indonesia's economic resilience. These measures have helped manage reduced government consumption and slower investment. Economic growth has benefitted the poorest groups, but its return diminished for wealthier groups of middle-classes as reflected by slower consumption growth for aspiring middle-class households. Focusing on generating better jobs that maintains middle-class standards of living will be important for the future.

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