Government Pushes Investment Strategy and Purchasing Power to Strengthen National Economic Foundation
JAKARTA – The government continues to strengthen the national economic foundation through targeted investment strategies and increased public purchasing power. Amid ongoing global challenges, these steps are prioritized to ensure that economic growth remains stable and sustainable.
Indonesia’s economic growth, recorded at 4.87 percent in the first quarter of 2025, reflects the resilience of the economy. The 5.2 percent target for the end of the year is still within reach, thanks to a combination of fiscal policies and sectoral incentives that are continually being reinforced.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that the government will launch various strategic policies to boost consumption and encourage investment.
“Strengthening social protection programs like PKH, Kartu Sembako, and MBG will be key catalysts in maintaining public purchasing power,” said Airlangga Hartarto.
Social assistance programs are designed to have a multiplier effect on growth, particularly by increasing household consumption. The government is also evaluating additional incentives for sectors impacted by the slowdown, while reinforcing key sectors such as food and beverage and agriculture.
Another step to strengthen public purchasing power is the provision of discounts on electricity tariffs and flight tickets during holidays. This strategy has proven effective and will be expanded to other sectors to keep domestic economic circulation active.
Airlangga Hartarto added that global dynamics, such as tariff wars and geopolitical uncertainties, have indeed pressured exports, but the government remains focused on strengthening the domestic economy.
“Budget efficiency policies are being implemented carefully to maintain fiscal sustainability without sacrificing growth,” added Airlangga Hartarto.
On the investment side, the government is simplifying regulations through revisions to the Presidential Regulation on investment sectors. Additionally, the Job Creation Expansion Task Force (Satgas Perluasan Lapangan Kerja) has been established to ensure optimal job creation.
Deputy for Investment Climate and Investment Development at the Ministry of Investment and Downstreaming, Riyatno, revealed that the digital sector is a top priority in Indonesia’s national investment roadmap.
“Investments in data centers and the digital ecosystem are projected to reach US$130 billion by 2025. This is a big opportunity for Indonesia to dominate Southeast Asia,” emphasized Riyatno.
He views cross-sector collaboration as a crucial element. “Collaboration between the government, industry players, and academics will accelerate digital transformation and open wide opportunities for innovation,” concluded Riyatno.
With an integrated strategy encompassing social protection, investment facilitation, and global risk mitigation, the government is strengthening Indonesia’s position to grow inclusively and competitively in the global economic landscape.
