The Organisation for Economic Co-operation and Development (OECD) on Tuesday raised Indonesia’s GDP growth forecasts for 2025 and 2026 to 4.9%, up by 0.2 percentage points for 2025 and 0.1 percentage points for 2026 from its previous projections in June. The upward revision was attributed to monetary policy easing and increased public investment, according to the OECD’s Interim Economic Outlook. However, the OECD’s projections remain below the Indonesian government’s own forecasts of 5.2% for 2025 and 5.4% for 2026. The latest data showed that Indonesia’s economy grew by 5.12% in the second quarter of 2025, the fastest pace since the second quarter of 2023, supported by strong fixed investment and private consumption. Meanwhile, Bank Indonesia has cut interest rates by a total of 150 basis points since September 2024, bringing the benchmark rate to its lowest level since October 2022.