By: Fran Hendrik )*
The government continues to strengthen national resilience in the face of global economic weakness. The global economic weakness caused by geopolitical tensions, slowing international trade, and fluctuations in commodity prices are challenges that encourage the government to continue to innovate in order to maintain the stability and sustainability of the national economy. Even so, the government has shown a quick and strategic response by strengthening international cooperation, accelerating digital transformation, and increasing coordination of the financial and fiscal sectors.
The global economic downturn is unavoidable, but its impact can be mitigated through adaptive and collaborative policies. The government recognizes that synergy between institutions and the involvement of all stakeholders are key to maintaining the momentum of national economic growth.
In terms of economic diplomacy, President Prabowo’s visit to Brunei Darussalam on May 14, 2025, was a concrete step to strengthen strategic partnerships in the fields of trade, food security, and protection of migrant workers. The visit was also accompanied by Coordinating Minister for Economic Affairs Airlangga Hartarto, who emphasized that the relationship between Indonesia and Brunei has entered a new, closer and mutually beneficial chapter.
Through the bilateral dialogue, Indonesia affirmed its commitment to expanding the space for collaboration. The focus of cooperation is directed not only at increasing trade, but also at protecting the rights and welfare of Indonesian migrant workers. This approach also strengthens the foundation of economic diplomacy that prioritizes humanitarian values and the welfare of the people.
Meanwhile, domestic economic stability remains a top priority. Bank Indonesia noted that the national financial system remained strong throughout the first quarter of 2025. Finance Minister Sri Mulyani Indrawati said that the Financial System Stability Committee (KSSK) consisting of the Ministry of Finance, Bank Indonesia, OJK, and LPS has increased cross-sector coordination in anticipating external pressures.
Sri Mulyani explained that the alignment of fiscal and monetary policies is an important key so that the Indonesian economy can continue to grow sustainably. In addition, the domestic financial sector also continues to be strengthened to increase resilience to global volatility.
Another important step is digital transformation targeting strategic sectors. Member of the Indonesian House of Representatives, who also serves as Deputy Chairman of the Golkar Party, Bambang Soesatyo, invited all educational institutions in Indonesia to be actively involved in encouraging the digital economy as a solution to the weakening economy and declining purchasing power of the community.
Through the use of artificial intelligence (AI), technological innovation, and the development of digital ecosystems, it can play a strategic role in creating new economic opportunities. Cross-sector collaboration, job training, and entrepreneurial initiatives are important instruments in building an inclusive and highly competitive digital ecosystem.
According to Bambang Soesatyo, Indonesia’s digital economy has great potential to grow into the largest in Southeast Asia. Referring to the e-Conomy SEA report, the value of Indonesia’s digital economy is estimated to reach USD 220 to 360 billion by 2030. The government has also prepared the National Strategy for Artificial Intelligence (Stranas KA) 2020–2045 as a foundation for future technology development.
Not only that, Prabowo’s government also strengthened international cooperation in the fields of energy and food, two vital sectors that were greatly affected by the global economic downturn. Efforts to diversify energy sources and national food security were accelerated so that Indonesia would not be too dependent on the volatile global market.
In the medium term, the government will continue to encourage strategic investment and structural reforms to create a competitive and investor-friendly business climate. This step will be accompanied by deregulation and bureaucratic simplification so that business actors, especially MSMEs, can grow and become the backbone of the national economy.
As part of the long-term strategy, human resource development is a top priority. Vocational education and job training programs will be directed at sectors that are national development priorities such as technology, modern agriculture, and renewable energy. This is expected to produce a productive workforce that is able to compete in the global market and encourage knowledge-based economic growth.
In the face of economic weakness, resilience is not only reflected in the macro figures that have been successfully maintained, but also from. The Prabowo administration has shown that with planned, responsive and inclusive cooperation, Indonesia is able to turn challenges into opportunities for sustainable progress.
The government is also actively encouraging the role of the younger generation as a driving force for economic recovery through various business incubation programs, technology scholarships, and support for digital-based startups. Relevant ministries and institutions continue to strive to create an innovative ecosystem that allows young Indonesians to develop creative ideas and solutions to answer the challenges of the times. By combining entrepreneurial spirit and technology utilization, the younger generation is expected to be the spearhead in accelerating national economic transformation amidst the global economic downturn.
)* The author is an observer of strategic issues