IFG Forecasts Indonesia Economy To Grow 5% In 2025
State-owned insurance holding company Indonesia Financial Group (IFG) is optimistic that the country’s economy can grow by up to 5 percent year-on-year (yoy) in 2025, after recording 5.12 percent growth in the second quarter of the year.
Research by IFG Progress projected 2025 growth in the range of 4.7–5.0 percent. Although inflation remains a challenge, improvements in the trade balance and public spending are emerging, supported by Bank Indonesia’s decision to cut its benchmark interest rate to 5.25 percent in July 2025.
In a written statement IFG Corporate Secretary Denny S. Adji also underscored the insurance sector’s contribution to national economic growth.
The financial services and insurance sector contributed 0.13 percentage points to GDP growth, with the insurance and pension funds subsector accounting for 0.05 percentage points. Adji said the data highlights the sector’s positive role despite global geopolitical challenges and the impacts of climate change.
“With a spirit of synergy, national industry players must strengthen their role in addressing global geopolitical challenges, particularly by opening new opportunities for growth in Indonesia’s insurance sector,” he stated.
Recently, the Bank Indonesia released a statement and said it was keeping economic growth projection between 4.6 percent to 5.4 percent in 2025.
The Central Bank added that data from Statistics Indonesia released showed that the economy grew by 5.12 percent year-on-year in the second quarter, up from 4.87 percent in the previous quarter.
“Overall economic growth in 2025 is projected to be in the range of 4.6-5.4 percent,” Executive Director of the BI Communications Department Ramdan Denny Prakoso noted.
