Indonesia sees 2025 growth at 5.3%-5.6%, boosts rice imports

Indonesia sees 2025 growth at 5.3%-5.6%, boosts rice imports

A worker arranges a rice sack at the warehouse in Jakarta, Indonesia, Feb 13, 2024. (Reuters file photo)
A worker arranges a rice sack at the warehouse in Jakarta, Indonesia, Feb 13, 2024. (Reuters file photo)

JAKARTA: Indonesia sees its annual gross domestic product growth for 2025 in a range of 5.3% to 5.6% and is aiming for a fiscal deficit of 2.48% to 2.8% of GDP, its planning minister said on Monday.

Suharso Monoarfa spoke to reporters after discussing the 2025 state budget plans with President Joko Widodo, who finishes his second and final term later this year.

The president told his cabinet earlier that its 2025 state budget proposal must adjust to the programmes of the new president, who will take office in October.

Official data earlier this month showed Indonesia's annual GDP rate fell slightly to 5.05% last year, from the 5.3% recorded in 2022, as falling commodity prices hit exports and tight monetary policy dampened demand.

The government has said it expects the growth rate to pick up to 5.2% in 2024, hoping spending for an election on Feb. 14 and a return of private investment once political uncertainty eases will boost GDP.

Indonesia has allocated an additional quota of 1.6 million tonnes of rice for import for this year on top of 2 million tons previously approved, an official said on Monday, anticipating lower domestic output in the January-March harvest.

The trade ministry is working to issue the import permits for the additional allocation, ministry official Arif Sulistiyo said during a weekly government meeting streamed live.

Indonesia imported 3.06 million tons of the grain in 2023, close to a record.

Southeast Asia's biggest economy is expected to produce 32 million tonnes of rice this year, up from 30.9 million tons in 2023, but production in the early months is expected to be disrupted by the impact of last year's drought.

January-March rice output is expected to be 2.82 million tons lower compared to the same month last year, Arif said.

Meanwhile, at retail level, rice has sold with prices above the government-set cap due to concerns of supply.

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