Quarterly Economic Insights
Indonesia entered the second quarter of 2025 with signs of macroeconomic stabilization, including cooled inflation at 1.60% and a narrowed current account deficit of 0.1% of GDP. However, domestic challenges persisted as manufacturing remained weak, consumer confidence stayed fragile, and layoffs topped 24,000 year-to-date.
The government responded with a IDR 24.4 trillion stimulus, while the Danantara sovereign wealth fund emerged as a strategic tool for SOE consolidation and green investment. Although digital and environmental reforms advanced, global trade risks and political uncertainty continue to weigh on economic momentum and investor sentiment.