Indonesia’s economy faces major pressures in early 2025, including global interest rate uncertainty, weak rupiah, layoffs, capital outflows, and new US trade tariffs (32%) affecting exports.
ALFI Institute warns these challenges may slow GDP growth, especially because exports to the US contribute about 10% of Indonesia’s total exports, while domestic consumption (over 50% of GDP) is weakening.
Yukki recommends strategic government actions, such as stronger economic diplomacy, improving national competitiveness, fiscal stimulus, attracting investment and downstream industries, and supporting domestic consumption through jobs and incentives.
