Bank Indonesia Governor: GDP to Remain Below Capacity in 2025, Further Rate Cuts Possible

The Governor of Bank Indonesia warned that the country’s 2025 GDP outlook will remain below the economy’s potential capacity, signaling weaker-than-expected growth.Speaking at an economic forum, the governor said the central bank has already lowered interest rates to support activity and stressed that there is room for further cuts if conditions warrant.The comments, reported by Jinshi Data, underscore policymakers’ concerns over sluggish demand and external headwinds facing Indonesia’s economy in 2025.While no specific growth target was announced, the governor emphasized that monetary policy will remain flexible to support recovery and maintain financial stability.