Bank Indonesia Cuts 2025 Growth Forecast After Weak Q1 Performance 

Bank Indonesia has revised down its economic growth projection for 2025 to a range of 4.6% to 5.4%, citing weaker global growth and slower-than-expected performance in the first quarter of the year. The central bank had previously forecast growth between 4.7% and 5.5%. 

Governor Perry Warjiyo announced the revised outlook during a virtual press conference following the May 2025 Board of Governors Meeting held on May 20–21. 

"The downward revision reflects the slowdown in global economic activity and the fact that Q1-2025 GDP growth came in lower than the 5.02% recorded in Q4-2024," BI Governor Perry Warjiyo announced on Wednesday. 

Indonesia’s GDP grew by 4.87% in the first quarter, supported primarily by increased household consumption during the New Year and Eid holidays. Investment also rose in line with realized capital inflows, while exports benefited from sustained demand from major trading partners and strong service exports. 

Perry expressed optimism that growth would accelerate in the second half of 2025, driven by rising domestic demand, including an uptick in government spending. He stressed the need for coordinated policy efforts to stimulate economic activity in the coming quarters. 

“To support growth, we need to strengthen domestic demand and optimize export opportunities,” he said. “Bank Indonesia’s mix of monetary and macroprudential policies, complemented by accelerated digital payment initiatives, will continue to be synchronized with the government’s fiscal stimulus.” 

Perry also warned of potential risks from global trade tensions, particularly the United States' recent reciprocal tariff policies, which could affect export momentum and business confidence. 

The revised BI outlook aligns with forecasts from other institutions. The International Monetary Fund in its April 2025 World Economic Outlook downgraded Indonesia’s GDP growth estimate to 4.7% for both 2025 and 2026, down from 5.1% previously, citing knock-on effects from US. trade policy shifts. 

The World Bank shares a similar outlook, projecting Indonesia’s growth at 4.7% in 2025, 4.8% in 2026, and 5% in 2027. 

Still, the government remains ambitious. Finance Minister Sri Mulyani Indrawati said on Tuesday that Indonesia is targeting 5.3% growth in 2025, and 5.2% to 5.8% growth in 2026, with a longer-term goal of reaching 8% by 2029. 

Source: Jakarta Globe 

Indonesia Secures USD 4 Bn in investment for Nusantara capital Project 
 
 

Total investment in Indonesia’s future capital, Nusantara – under development in East Kalimantan – has reached IDR 65.73 trillion (over USD 4 billion), according to the Nusantara Capital City Authority (OIKN). 
 
 

As of April, 42 companies have realized their investments in Nusantara, with a total value of IDR 62.08 trillion. On Wednesday, six more companies signed investment agreements totaling IDR 3.65 trillion. 
 
 

OIKN head Basuki Hadimuljono said in North Penajam Paser, East Kalimantan, on Thursday that the new projects include the development of a culinary center on 1,800 square meters of land, a five-star Marriott hotel on 2.04 hectares, and an international school on 7,900 square meters. 
 
 

The school is expected to span 10,000 square meters and accommodate up to 750 students. 
 
 

Additionally, a modern supermarket featuring a food court is planned on 0.21 hectares of land, alongside new office zones, apartments, and a commercial area - all supported by the fresh investments. 
 
 

Meanwhile, Agung Wicaksono, OIKN Deputy for Funding and Investment, emphasized that his team has been working actively to enhance Nusantara's appeal among investors and accelerate project realization. 
 
 

He expressed confidence that continued collaboration with investors will have a lasting positive impact on the development of Indonesia's future seat of government. 
 
 

The government began construction of Nusantara in 2022, under then-President Joko Widodo. 
 
 

President Prabowo Subianto, who took office in 2024, has assured the public that his administration will carry on the mega project through 2029, with a dedicated budget of IDR 48.8 trillion (nearly USD 3 billion). 
 
 

In April, Hadimuljono said that the project's second phase, focusing on judicial and legislative buildings, had begun. He said that the buildings are key to the government's plan to designate IKN as the center of political affairs by 2029. 

Source: Antara news 

Chevron seeks big oil and gas block in Indonesia, regulator says 

US. oil major Chevron, is interested in exploring and developing oil and gas assets in Indonesia with sizable reserves, Djoko Siswanto, chairman of its upstream oil and gas regulator SKK Migas, said on Tuesday. 

Chevron is seeking blocks with potential reserves of around 15 trillion cubic feet of gas, Djoko said, adding that the company is currently in an early evaluation of some of those potential assets.  

Indonesia will offer blocks in Bali or other parts of eastern Indonesia. 

"We regularly engage with SKK Migas. However, as per our long-standing policy, we do not discuss the details of these engagements," Cameron Van Ast, a spokesperson for Chevron Asia Pacific, told Reuters by email, without providing further details. 

Chevron exited Indonesia in 2023 when it divested its stakes in Indonesia Deepwater Development (IDD) after a change in the facility's design stalled development. 

Located in the Makassar Strait off the island of Borneo, IDD consists of two projects, Bangka and Gendalo-Gehem, with combined recoverable gas resources of nearly 3 trillion cubic feet (Tcf). 

Source: Reuters