By: Ardiansyah Putra
Indonesia’s economic growth of 5.12 percent in the second quarter of 2025 reaffirms the positive trajectory being built in the early days of President Prabowo Subianto’s administration. This achievement is not only an indicator of the continuity of strong macroeconomic policies but also reflects the government’s swift response to unpredictable global dynamics. Amid international geopolitical tensions and the threat of economic slowdown in various trading partner countries, Indonesia has instead demonstrated resilience worthy of appreciation.
Deputy for National Accounts and Statistical Analysis at the Central Statistics Agency (BPS), Edy Mahmud, explained that the surge in economic activity during Ramadan and Eid al-Fitr played a major role in driving growth this quarter. Household consumption strengthened significantly, contributing 53.31 percent to the Gross Domestic Product (GDP). This phenomenon indicates that people’s purchasing power has been maintained, thanks to stable prices and consistent distribution of social assistance. Strong consumption momentum has created a multiplier effect on other sectors such as transportation, accommodation, and food services.
The boost in consumption was accompanied by stable investment growth, particularly in the construction sector and procurement of capital goods. Through various national strategic projects, including the development of industrial zones and energy infrastructure, the government has succeeded in building business confidence for investment. At the same time, improved domestic demand has encouraged industrial players to expand production capacity. This shows a synergy between expansionary fiscal policies and a well-maintained investment climate.
Chairman of the Board of Commissioners of the Financial Services Authority (OJK), Mahendra Siregar, assessed that the stability of the financial sector provides ample room for financing productive sectors. Lending to MSMEs and the manufacturing industry continues to grow, supported by the digitalization of financial services and strengthened governance in the banking sector. In the midst of global uncertainty, the domestic financial system remains solid thanks to strict oversight and measured risk mitigation. This reflects the active role of the financial sector in supporting national economic growth.
These developments cannot be separated from the macroeconomic policy direction set by the government. Coordinating Minister for Economic Affairs, Airlangga Hartarto, stressed that synergy between fiscal and monetary policy is a crucial foundation for maintaining economic stability. The government’s strategy of promoting industrial downstreaming, strengthening food security, and expanding digital transformation has proven to yield results. This approach not only supports short-term growth but also lays a solid foundation for sustainable development.
Export performance also contributed to growth, even though the global environment has yet to fully recover. The government remains consistent in promoting the export of value-added goods through downstreaming policies and market diversification. At the same time, government spending directed toward productive sectors and social protection has provided an additional boost to aggregate demand. This strategy keeps the economy moving without creating excessive fiscal pressure.
Public confidence in the direction of national development is increasingly evident from the consistency of stable macroeconomic indicators. Inflation remains low, the exchange rate is stable, and foreign exchange reserves are at a safe level. All these factors strengthen optimism about medium-term economic resilience, while opening space for further structural reforms currently being prepared by the government. These reforms include improving investment regulations, digitalizing public services, and strengthening interregional connectivity.
This optimism is also felt by business actors and the wider community. Under President Prabowo’s leadership, the development agenda is implemented in a measured and results-oriented manner. The government is not merely pursuing economic growth, but also ensuring that such growth is inclusive and reaches all levels of society. This commitment is reflected in programs aimed at strengthening MSMEs, developing villages, and improving the quality of the national workforce.
Although global challenges still loom, Indonesia is now in a stronger and more prepared position. The government has prepared various anticipatory measures to maintain growth continuity, including strengthening fiscal reserves, expanding trade partnerships, and accelerating strategic infrastructure spending. With an adaptive and collaborative approach, the government seeks to ensure that this growth momentum is not only maintained but also enhanced.
Overall, the 5.12 percent growth achievement is a significant sign that the government’s development strategy is on the right track. With an increasingly solid foundation, stronger intersectoral coordination, and visionary leadership, Indonesia is believed to be able to move more confidently toward its target of becoming a developed nation in the coming years. President Prabowo’s administration has shown that stability and economic progress can go hand in hand in a solid and sustainable direction.
This positive momentum is also driven by the government’s success in managing market expectations and enhancing business confidence. The simultaneous implementation of various structural reforms, including streamlining licensing procedures, improving bureaucratic service quality, and accelerating economic digitalization, has created a more conducive business climate.
Meanwhile, cross-sectoral cooperation and policy harmonization between central and regional governments have further strengthened the effectiveness of economic recovery programs. With the support of all stakeholders, this achievement is not merely a number but a positive signal of the gradual yet certain economic transformation underway.
*) Economic Observer