Indonesia’s Economy Grew 5.03% in 2024, Bankers Remain Optimistic for 2025

Statistics Indonesia (BPS) reported that Indonesia’s economic growth in 2024 reached 5.03%, slightly lower than 5.05% in 2023 and significantly below 5.31% in 2022.

The economy remained largely driven by household consumption, but its growth slowed to 4.94%, falling below the 5% mark.

Bankers Respond to 2024 Economic Growth

Despite the lower growth compared to the past two years, bankers remain optimistic about business expansion opportunities in 2025.

Steffano Ridwan, President Director of PT Bank Maybank Indonesia Tbk. (BNII), expressed confidence in business growth prospects for the year ahead.

"We remain positive about business growth opportunities in 2025," he told CNBC Indonesia on Wednesday (5/2/2025).

However, Steffano also highlighted several global challenges that could impact Indonesia’s economic performance, including US foreign policy and geopolitical tensions.

"Factors such as global policy shifts, [including US President Trump’s policies], and geopolitical instability cannot be ignored. These are key considerations for our business growth strategy in 2025," he added.

Bankers Expect Continued Growth in Bank Lending

Meanwhile, Efdinal Alamsyah, Compliance Director of PT Bank Oke Indonesia Tbk. (DNAR), viewed Indonesia’s 5.03% GDP growth as relatively stable. However, he noted that household consumption growth of only 4.94% signals challenges in consumer purchasing power and confidence.

Nevertheless, Efdinal remains optimistic that bank lending will continue to grow positively in 2025, supported by several factors.

"We are optimistic that bank lending will grow positively in 2025, driven by strong domestic economic sentiment. The expected decline in domestic interest rates could also lower funding costs, allowing for reduced lending rates," he explained.

Efdinal further stated that the banking industry outlook remains positive, supported by accommodative monetary and fiscal policies as well as a stable economic growth projection.

Additionally, Bank Oke Indonesia projects around 10% credit growth in 2025, in line with sustained economic stability.

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