Indonesian Economy Grows 4.84% In Q1 2025 Amidst Global Trade Dynamics

The Financial Services Authority (OJK) stated that the Indonesian economy in the first quarter of 2025 grew by 4.87%. Chairman of the OJK Board of Commissioners, Mahendra Siregar said that the achievement was still lower than the previous estimate. However, it is still better when compared to other Southeast Asian countries. "Uncertainty due to the announcement of tariffs by the US and the escalation of the global trade war have prompted many international institutions to revise their projections for world economic growth downward," Mahendra said at the April Monthly RDK press conference, Friday (9/5). Furthermore, Mahendra explained that the current global dynamics pose a risk to the economies of many countries, including Indonesia.  

Based on data presented by the OJK, the International Monetary Fund (IMF) cut its projection for global growth in 2025 to 2.8%, far below the historical average of 3.7%. Meanwhile, the World Trade Organization (WTO) estimates that global trade volume will contract by 0.2% this year. However, there is growth supported by household consumption and remains strong with controlled inflation, namely 1.95% annually. "OJK continues to strive to maintain the resilience of the national economy amidst global pressure. We provide space for the financial sector to continue to contribute to economic growth," he said. Programs for MSMEs He also continued, now OJK is also finalizing a number of strategic policies to deepen the financial market, encourage innovation in financial instruments and facilitate access to financing. Especially for MSME players.  

In addition, OJK is supporting various central and regional government policies and coordinating closely with institutions such as KSSK (Financial System Stability Committee), SRO and market players to reduce volatility in the financial sector. In the stock market, the JCI index on April 30, 2025 was recorded to have strengthened by 3.93% on a monthly basis to the level of 6,766, although it still weakened by 4.42% on an annual basis. The market capitalization value was recorded at IDR 11,705 trillion with foreign investors recording a net sell of IDR 20.79 trillion throughout April. The sectors that recorded the highest strengthening included the basic materials and health sectors, while the technology sector weakened. The average daily transaction value increased to IDR 12.47 trillion. Bond Value In the bond market, the ICBI index strengthened 1.61% on a monthly basis with foreign investors posting a net buy of IDR 7.79 trillion. Meanwhile, the value of assets managed by the investment management industry reached IDR 821 trillion, with mutual funds recording a net redemption of IDR 6.24 trillion. OJK also noted that fundraising in the capital market continues to show a positive trend. Until the end of April, the value of public offerings reached IDR 56.06 trillion, including IDR 3.31 trillion from six new issuers. In addition, there are still 85 public offering pipelines with an indicative value of IDR 70.54 trillion. 

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