Indonesia projects its annual GDP growth for 2025 to be between 5.3% and 5.6%, with a target fiscal deficit of 2.48% to 2.8% of GDP. The country's GDP growth rate slightly declined to 5.05% in 2023, down from 5.3% in 2022. The government anticipates a growth rate of 5.2% in 2024, driven by spending for the upcoming election on February 14 and expected private investment post-election.
To address domestic rice supply concerns, Indonesia has increased its rice import quota by 1.6 million tonnes for the current year, in addition to the previously approved 2 million tons. In 2023, Indonesia imported 3.06 million tons of rice, nearing a record high. The country's rice production for 2024 is estimated to be 32 million tonnes, an increase from 30.9 million tons in 2023. However, production in the first quarter is expected to be lower by 2.82 million tons compared to the same period last year, due to the impact of the previous year's drought. Consequently, rice prices at the retail level have exceeded the government-set cap due to supply concerns.
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Indonesia