Jakarta – Amidst global challenges and uncertainty in the world economy, the Indonesian Government remains optimistic that the 2025 national economic growth target can be achieved as planned. The economic growth target of five percent is maintained, although there are projections that the Indonesian economy will only be able to grow in the range of 4.5 to five percent. Various strategies have been prepared to anticipate potential weakening of the domestic and external economy.
“We appreciate the views and projections from various parties, including the banking sector. It is important as evaluation material. However, the government remains optimistic. With the right strategy and strong synergy, five percent growth is still very possible to achieve,” said Coordinating Ministry for Economic Affairs Spokesperson Haryo Limanseto.
The government’s optimism is based on maintained macroeconomic stability, controlled inflation, and various policies prepared to strengthen the resilience and competitiveness of the national economy.
One of the main steps is to encourage household consumption, which is a major contributor to Indonesia’s economic growth. The government is expanding the Free Nutritious Meals (MBG) program, which not only aims to improve children’s nutritional security but also create economic turnover in the local food sector.
“We also continue to distribute social assistance in a targeted manner, provide electricity subsidies, and provide public transportation discounts to maintain people’s purchasing power,” said Haryo.
State spending will also be accelerated so that fiscal stimulus is truly felt in the field. The government realizes that the state must be present faster. This is because the realization of fast spending will encourage economic activity in society.
In addition to maintaining consumption, the government is also fixing the supply side. Through the Presidential Instruction on Deregulation, various business permits are simplified. On the other hand, the revision of the Presidential Regulation on Investment Business Sectors (BUPM) is being finalized to expand investors’ room for maneuver.
“The Deregulation Task Force will soon be formed according to the President’s direction, but the existing team has started working. We are identifying export-import licensing issues that are often complained about by business actors. This is part of a policy package that will be announced soon,” Haryo explained.
The deregulation policy is also part of Indonesia’s long-term preparation to become a member of the Organisation for Economic Co-operation and Development (OECD).
“Policy transformation must be serious if we want to compete at the global level,” Haryo added.
For the financing sector, the government has increased the target for distributing People’s Business Credit (KUR) and has begun implementing the Labor-Intensive Investment Credit scheme for strategic sectors. MSMEs are also facilitated in terms of financing and exports.
“MSMEs that have export potential will receive promotional support and facilitation. We also accelerate the completion of trade agreements such as IEU-CEPA and CP TPP, as well as opening up non-traditional market penetration and strengthening relations with BRICS countries,” said Haryo.
To maintain sustainable growth, the government has prepared three pillars of medium-term transformation, namely industrial downstreaming, economic digitalization, and green energy transition.
In the industrial sector, the government focuses on developing mineral processing such as nickel, bauxite, and copper, as well as strengthening the palm oil industry. The development of integrated industrial areas is also continuing.
“This is not just about exporting raw materials, but building a competitive domestic value chain and industrial ecosystem,” explained Haryo.
Meanwhile, in the digital sector, the government is targeting even infrastructure development throughout Indonesia, as well as supporting increased capacity of technology startups and digitalization of MSMEs.
On the energy side, the transformation towards a green economy is strengthened by the development of renewable energy and electric vehicles. One of the clean energy projects that is already underway is the Muara Laboh Geothermal Power Plant (PLTP) which received funding of USD499 million from the Asia Zero Emission Community (AZEC) program.
Haryo emphasized that the economic growth target of above five percent cannot be achieved by just one actor.
“The government cannot work alone. It requires close synergy between the government, business actors, and the wider community. This is collective work,” said Haryo.
With these steps, the government hopes that Indonesia can avoid economic weakening, while maintaining the continuity of development. This optimism is strengthened by the support of the community and the business world which continues to show high resilience and adaptability.
