INDONESIA sees its annual gross domestic product growth for 2025 in a range of 5.3 to 5.6 per cent and is aiming for a fiscal deficit of 2.48 to 2.8 per cent of GDP, its planning minister said on Monday (Feb 26).

Suharso Monoarfa spoke to reporters after discussing the 2025 state budget plans with President Joko Widodo, who finishes his second and final term later this year.

The president told his cabinet earlier that its 2025 state budget proposal must adjust to the programmes of the new president, who will take office in October.

Official data earlier this month showed Indonesia’s annual GDP rate fell slightly to 5.05 per cent last year, from the 5.3 per cent recorded in 2022, as falling commodity prices hit exports and tight monetary policy dampened demand.

The government has said it expects the growth rate to pick up to 5.2 per cent in 2024, hoping spending for an election on Feb 14 and a return of private investment once political uncertainty eases will boost GDP. REUTERS