Jakarta (VNA) – Indonesia’s economy will expand by 5% this year and 5.1% in 2025 and 2026, according to the World Bank’s latest report.
The latest projection was an increase from the bank's previous estimates of 4.9% this year and next, followed by 5% in 2026.
Indonesia’s economy is expected to steadily grow over the next two years on the back of domestic consumption and investment despite weak exports, the report said.
Household spending, a big contributor to Indonesia's GDP, and election-related spending helped Southeast Asia's largest economy grow 5.11% in the first quarter of 2024.
Indonesia's gross domestic product (GDP) growth is projected to reach an average of 5.1% per year from 2024 to 2026. However, the country will face many obstacles, notably from worsening terms of trade. It noted several risks to the economy, including high interest rates and geopolitical shocks, which could further weigh on exports already impacted by lower prices.
The latest projection assumes a large contribution from public consumption -- with government spending expected to increase -- while foreign direct investment as a share of GDP is projected to return to pre-pandemic levels, World Bank senior economist Wael Mansour said.
He went on to say that Indonesia's "credible" fiscal rule had helped attract investments and lower risk premiums. But president-elect Prabowo Subianto, who will take office in October, is reportedly looking to increase the country's debt-to-GDP ratio to 50% - from less than 40% - to fund his campaign promises including free school meals.
The government's 2025ꦗ budget is expected to outline an implementation plan for the new administration's economic goals, and signal its fiscal policy stance./.
A memorandum of understanding (MoU) on cooperation has been signed between the Land Bank Authority of Indonesia and J Trust Group of Japan to develop Penajam Eco City, designed as a commercial hub to serve as the economic engine of Indonesia's new capital.
The Indonesian government on June 25 said that it will issue two protection policies, namely Safeguard Measures Import Duty (BMTP) and Anti-Dumping Import Duty (BMAD), for textiles and textile products as an effort to protect the local industry from surging imported textiles.
The Indonesian government and President-Elect Prabowo Subianto have agreed to allocate 71 trillion IDR (approximately 4 billion USD) for a free school lunch programme in the 2025 state budget, Finance Minister Sri Mulyani Indrawati told a press conference in Jakarta on June 24.
The tax adjustment supports the Malaysian Government’s strategy to reduce reliance on foreign food supply chains and to assist domestic farmers, a finance official has said.
The proposed venue is located in the Chatuchak area of Bangkok, featuring eight public sites, including Krungthep Aphiwat Central Terminal and several nearby parks.
Connectivity is expected to improve further with the completion of the fifth Laos–Thailand Friendship Bridge by the end of 2025, facilitating logistics and agricultural exports to Vietnam, Thailand, and China.
Two naval gunboats intercepted a fishing vessel carrying 1.5 tonnes of methamphetamine hydrochloride off the coast of the main island of Luzon just before dawn, in a joint operation with the Philippine Drug Enforcement Agency.
In the today context of socio-economic development and growth, the professionalism of Vietnam’s revolutionary journalists continues to rise, guided by exemplary mastery of new information technologies and the modernisation of their founding principles to preserve the enduring values of revolutionary journalism.
Thai Permanent Secretary of the Ministry of Commerce Vuttikrai Leewiraphan Thailand's formal proposal will be substantial enough for the US to consider further detailed negotiations. He hoped for a tariff rate not exceeding 10% and suggested that the US might extend the negotiation period if an agreement is not reached by the July 8 deadline.
Organised by the Ministry of Culture and the Association of Thai Silk & Culture Promotions, the event honors Her Majesty the Queen on her 47th birthday anniversary and promotes Thai craftsmanship on an international stage.
Prensa Latina's recent article on Vietnam’s assurance of smooth and effective transition to a leaner structure highlighted Prime Minister Pham Minh Chinh’s latest directions on implementing 28 resolutions regarding the decentralisation and delegation of authority.
The lab focuses on four key thematic areas: energy transition and green innovation, sustainable agriculture, circular economy and sustainable cities, and nature-based solutions and biodiversity.
The key content of the document titled "Accelerating Innovative Strategies: Addressing the OOSCY Challenges" will be refined further in a seminar preceding the 47th ASEAN Summit in Kuala Lumpur this October.
This follows Telegram’s serious failure to address the content that has been repeatedly reported to them, despite various efforts of negotiation and cooperation made by MCMC, it said.
Efforts to empower women must transcend dialogue and translate into concrete commitments, including corporate pledges and government partnerships, according to the spouse of Malaysian Prime Minister Anwar Ibrahim.
The forum featured two in-depth discussion sessions, engaging representatives from governments, think tanks, and businesses from both ASEAN and China, on how to forge closer ties for a common future.
The new FIFA Hub in Jakarta will not only support football development in Indonesia but also serve as a coordination centre for 21 football associations across Southeast and East Asia.
Minister Counselor Nguyen Hoang Nguyen reaffirmed Vietnam’s principled and consistent stance on the Palestine issue, calling for an immediate and lasting ceasefire across the entire Gaza Strip.
PM Anwar Ibrahim affirmed the determination of Malaysia, as ASEAN Chair for 2025, to utilise all viable regional mechanisms of the bloc and work with partners to de-escalate violence and restore a peace process led by Myanmar.
Talking to the Vietnam News Agency on the occasion of the 100th anniversary of the Vietnam’s Revolutionary Press Day (June 21, 1925–2025), Nikulina, who is also a veteran journalist of Russia’s Sputnik News, emphasised the vital role of mainstream journalism in defending the truth and maintaining public trust.
The Ministry of Commerce reported that imports also rose 18% to 29.9 billion USD during the same period, resulting in a trade surplus of 1.1 billion USD. In May alone, Thailand posted a 4.6 billion USD trade surplus with the US and a 4.1 billion USD trade deficit with China.
The World Bank will provide a 2.1 billion USD financing package for Indonesia, focusing oncreating jobs, stimulating economic growth, and enhancing access to clean energy across the country.
