Jakarta — The government reaffirms its commitment to accelerating national economic growth in the second quarter of 2025 through a series of strategic policies focused on strengthening public purchasing power, accelerating investment, and increasing government spending realization.
This was conveyed by the Coordinating Minister for Economic Affairs, Airlangga Hartarto, in response to Indonesia’s economic growth performance, which was recorded at 4.87 percent (year-on-year) in the first quarter of 2025. The government emphasizes the need for measured steps to maintain the momentum of recovery and strengthen the resilience of the national economy amidst global dynamics.
“Given the current situation, to drive higher economic growth in the second quarter of 2025, the government will implement policies focusing on improving purchasing power, economic stimulus, encouraging investment, and accelerating government spending,” said Airlangga.
According to him, the government has prepared concrete steps to strengthen the national economic foundation, including through deregulation and streamlining licensing processes to create a more conducive business climate. The government is also pushing for the implementation of Investment Credit for labor-intensive industries as a strategy to create sustainable new jobs.
“We remain committed to improving the investment climate. Investment Credit for labor-intensive industries is one of the focuses so that the manufacturing and other sectors can absorb labor and boost national productivity,” he added.
Meanwhile, Minister of Finance, Sri Mulyani Indrawati, emphasized that the State Budget (APBN) will continue to be a key instrument in maintaining economic stability and supporting growth. According to Sri Mulyani, the government remains optimistic by ensuring that fiscal policies work effectively, particularly in protecting the public and strengthening national economic resilience.
“Optimism is maintained, supported by the government’s commitment to ensuring that the State Budget works optimally to protect the public, including ensuring sustainable economic growth,” she explained.
Sri Mulyani also highlighted the importance of effective government spending in stimulating growth, especially in strategic sectors such as infrastructure, education, and healthcare, which have a high multiplier effect on the economy.
Support for the government’s policies also comes from the industry and logistics sectors. The Chairman of the Indonesian Logistics and Forwarding Association (ALFI Institute), Yukki Nugrahawan Hanafi, stated that the structure of Indonesia’s Gross Domestic Product (GDP), which is dominated by domestic consumption, requires special attention to continue being the driving force of the economy.
“Looking at Indonesia’s GDP structure, domestic consumption contributes around 55 percent, followed by government spending at around 15 percent,” said Yukki.
He encourages the government to strengthen domestic consumption with policies that support the purchasing power of the middle class, such as spending incentives for MSMEs, the opening of job opportunities in the manufacturing sector, and the acceleration of government budget realization.
“Spending stimulus directed to the real sector, especially MSMEs, will strengthen the circulation of money in society. This is important so that economic recovery is not only felt on paper but also on the ground,” he stressed.
With a combination of fiscal stimulus, regulatory reforms, and efforts to create jobs, the government is optimistic that it can drive higher economic growth in the second quarter of 2025, while also maintaining the resilience of the national economy amidst global uncertainties. This step is also part of the medium-term strategy towards inclusive and sustainable economic growth.
