The World Bank on Tuesday raised Indonesia’s GDP growth forecast for 2025 to 4.8%, up from 4.7%, according to its East Asia and the Pacific Economic Update. However, the agency cautioned that current government measures to sustain growth may be insufficient to support long-term economic expansion. Last month, Indonesia’s central bank projected that economic growth would exceed the midpoint of its 4.6%–5.4% target range. To support this outlook, the central bank has cut interest rates by a cumulative 150 bps since last September. In September, the Indonesian government introduced a new set of incentives and programs aimed at stimulating economic growth, reducing unemployment, and creating a more favorable investment climate. This policy package follows the Rp24.44 trillion (US$1.5 billion) in stimulus funding announced in May. Recent data showed that the Indonesian economy grew by 5.12% in Q2 2025, the fastest pace since Q2 2023.