---
title: "Barclays: Indonesia's economic growth may slow to 4.8% in 2025"
description: "Barclays economists predict that Indonesia's economic growth may slow to 4.8% in 2025, down from 5.0% last year. Reasons include a freeze on government spending, weak investment, and challenges from U"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/238753137.md"
published_at: "2025-05-05T13:29:12.000Z"
---

# Barclays: Indonesia's economic growth may slow to 4.8% in 2025

> Barclays economists predict that Indonesia's economic growth may slow to 4.8% in 2025, down from 5.0% last year. Reasons include a freeze on government spending, weak investment, and challenges from U.S. tariffs. If the Indonesian rupiah remains stable, the central bank may cut interest rates by 25 basis points in May and is expected to lower rates 4 more times by early 2026. The current benchmark interest rate is 5.75%

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

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.