By Fransiska Nangoy and Bernadette Christina
JAKARTA, Jan 27 (Reuters) – Overall GDP growth in Indonesia is expected to have met the 5.2% target for 2025 despite widespread destruction caused by floods late last year, though growth was estimated to have been quicker in the fourth quarter, the finance minister said on Tuesday.
The 2026 growth target of 5.4% was also maintained for the $1.4 trillion economy, Purbaya Yudhi Sadewa said at a gathering of Indonesia’s financial stability board.
Bank Indonesia Governor Perry Warjiyo said his institution would continue to monitor for room to cut interest rates to support economic growth.
He said rates were kept unchanged in recent months to maintain the stability of the rupiah. Indonesia’s currency has weakened this month over concerns about central bank independence.
Bank Indonesia would help it remain stable, including through market interventions, Warjiyo said.
“In formulating monetary policy, we will always look at inflation, exchange rates, and economic growth data,” Warjijo said.
BI kept the benchmark 7-day reverse repurchase rate IDCBRR=ECI at 4.75% last week, where it has been since September. It has cut rates by 150 basis points from September 2024 to September 2025.
Warjiyo said the rupiah is expected to stabilise with a tendency to strengthen.
(Reporting by Fransiska Nangoy, Bernadette Christina; Writing by Gibran Peshimam; Editing by David Stanway and Bernadette Baum)
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