UOB Indonesia Economic Outlook Forum 2025

Indonesia has become one of the world's large economies and the largest in ASEAN, which brings optimism that the dream of "Golden Indonesia 2045" can be realized.In addition, Indonesia successfully conducted democratic elections and maintained political stability at the beginning of the year. After the election of the new government, economic policy has become the focus of attention of the new leadership with a view to achieving higher, sustained, and qualitative growth in Indonesia. Through expansionary policies, especially fiscal policies, it is believed that Indonesia can achieve higher growth momentum than the current 5%-6% range. In recent years, structural transformation areas such as downstream commodities, capital transfers, and open response to investment projects have borne fruit. This is concrete evidence that Indonesia continues to move in a better direction with pragmatism in achieving social prosperity.

This period is the best time to welcome Indonesia's new leadership and to understand what can be done to develop an economic strategy consistent with the country's growth. First, it is important to properly understand the issue of Indonesia's growth potential. Indonesia has achieved steady growth of at least 51 TP3T on household consumption alone. However, Indonesia still has the opportunity to increase higher-quality, higher-value-added investments that can make a significant contribution to economic growth. Indonesia can also focus on fiscal policies that target economic sectors with higher multiplier effects. Not only that, Indonesia has the ability to combine FDI policies with key industries to increase output and achieve higher economic growth.

Secondly, the next decade will be very important for Indonesia as it faces a changing global landscape brought about by technological change and geopolitical uncertainty. Indonesia must refocus its strategy to capitalize on its large population, as well as to adopt the technologies needed to increase overall productivity. Third, in order to initiate new economic policies and continue the already successful transformation policies, Indonesia needs to look beyond 2045. The road Indonesia is traveling is quite steep, as the country must grow by at least 71 TP3T - holding on to 81 TP3T to be able to achieve sustainable economic growth and escape the threat of the middle-class income trap. To do so, questions related to the main economic spending priorities of the next government need to be thoroughly answered. UOB Indonesia believes that foreign investors will definitely come to Indonesia if the growth-driven fiscal policy strategy is properly understood. Not only do they seek Indonesia's growth dividend, but also the potential to increase domestic investment. Going forward, this effort will accelerate Indonesia's economic growth and realize its ambition to become one of the world's fastest growing, high-income countries. All of these important issues will be discussed in UOB Indonesia Economic Outlook 2025, which is organized under the theme "Welcome to a Great Indonesia / A New Dawn for a Great Indonesia".

The event will be held on Wednesday, September 25, 2024 at the Grand Ballroom of the Kempinski Hotel Indonesia, with the Coordinating Minister for Economic Affairs, Advisor to the President-elect, UOB ASEAN Economist, Deputy Representative for Investment Cooperation of the Ministry of Investment/BKPM, Head of the Currency Management Review and Strategy Group of the Department of Securities Management and Assets of Bank Indonesia, as well as INDEF economists, in attendance at this annual forum.It is hoped that the UOB Indonesia Economic Outlook 2025 will not only outline the new leadership's economic strategy, but also provide ideas and tactics to support the Indonesian economy in achieving increasing levels of quality and prosperity. The UOB Indonesia Economic Outlook 2025 will also be broadcast live via the UOB Indonesia YouTube account and CNBC Indonesia.