Lates News

Barclays economists Brian Tan and Hongying Liu said in a report that due to government spending freezes, weak investments, and trade challenges from the United States, Indonesia's economic growth may slow from 5.0% last year to 4.8% by 2025. They pointed out that fiscal delays could lead to stagnant government spending. They believe that if the Indonesian rupiah remains stable, the Indonesian central bank may cut interest rates by 25 basis points at the May meeting. Barclays maintains its core forecast of four more rate cuts of 25 basis points each by early 2026. The demand for policy support is increasing against the backdrop of weakening domestic demand and external trade risks. The benchmark interest rate of the Indonesian central bank is currently at 5.75%.