Government’s Economic Policies Are on the Right TrackBy: Sumintro Disastra (*
Amid global economic dynamics and challenges, the Indonesian government’s economic policies continue to show a positive direction. Despite various external pressures and domestic fluctuations, national economic growth remains on track with targeted goals. Numerous economic indicators affirm that Indonesia’s economic fundamentals are solid and provide a sound basis for optimism among the public and business sectors.
Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), stated that Indonesia’s economy continues to grow steadily. While acknowledging a slight decline in consumer purchasing power, he noted that the impact was not significant enough to disrupt overall economic stability.
AHY emphasized that today’s global economic challenges are not easy, but what is needed is optimism to maintain growth. Continued infrastructure development, increased investment, and industrial competitiveness are key areas the government continues to strengthen in response to global economic uncertainty.
This view aligns with the statement from Coordinating Minister for Economic Affairs, Airlangga Hartarto. He asserted that although the rupiah has experienced fluctuations, this does not necessarily reflect economic weakening. On the contrary, Indonesia’s economy remains supported by strong fundamentals.
This is evident through various leading indicators showing positive trends. National economic stability is being maintained through proactive government policies that anticipate the impacts of global uncertainty. Additionally, efforts to keep inflation under control and strengthen national food security are ongoing to preserve household purchasing power.
One key indicator reflecting Indonesia’s economic resilience is its increasing exports. Chairman of the Indonesian Chamber of Commerce and Industry (KADIN), Anindya Bakrie, highlighted that although there has been an economic slowdown—evident from reduced purchasing power and a decline in Eid 2025 travelers—these factors have not significantly affected overall economic growth. He remains confident that Indonesia’s economic growth aligns with government targets.
Anindya further emphasized that economic fluctuations are normal and should be assessed based on national economic goals and development priorities. One of the main drivers of Indonesia’s economic growth is exports, which consistently increase by approximately USD 2.5 billion to USD 3 billion monthly.
This trend is a positive sign that the national economy remains healthy. In addition to exports, the manufacturing sector is showing substantial growth, serving as a major engine for the national economy. The government continues to support domestic industries through incentives that help businesses expand and boost global competitiveness.
Moreover, investment levels in Indonesia are also rising. In 2024, investment grew by IDR 700 trillion compared to the previous year, reaching a total of IDR 900 trillion.
This growth affirms investor confidence in Indonesia and serves as further evidence that the government’s economic policies are on the right path. This positive trend is closely linked to pro-investment policies, such as streamlined business licensing, fiscal incentives for strategic investors, and the development of industrial zones that attract both domestic and foreign capital.
Increased investment yields broader positive impacts, including job creation, improved industrial productivity, and enhanced national competitiveness. With rising investments, strategic sectors such as energy, infrastructure, and technology continue to grow, contributing to a ripple effect across Indonesia’s economy. As long as this trend continues, the potential for sustainable economic growth will become even stronger, positioning Indonesia to better navigate external challenges.
The government remains committed to maintaining economic stability through adaptive and responsive policymaking. Strategic initiatives such as industrial sector incentives, export competitiveness enhancement, and infrastructure project acceleration serve as key pillars supporting national economic growth.
With a measured and consistent approach, government policies have proven effective in preserving growth momentum amid global uncertainty. Additionally, Micro, Small, and Medium Enterprises (MSMEs)—the backbone of the Indonesian economy and a major source of employment—continue to receive support through various assistance and mentoring programs.
Optimism toward the national economy must be sustained. The government has set realistic targets grounded in strong economic fundamentals. It is crucial for the public and business actors to support these policies and trust that Indonesia has the capacity to continue growing and advancing amid current challenges.
While many countries are facing severe economic pressure, Indonesia has managed to sustain positive growth. With the right policies and effective implementation, the country can continue its journey toward greater prosperity. Therefore, let us place our trust in the government’s efforts to define and achieve national economic goals.
With optimism and collective support, Indonesia can maintain its growth momentum and achieve sustainable economic progress. It is time to unite, collaborate, and contribute actively to ensure that Indonesia’s economy not only withstands current challenges but also thrives and delivers benefits for all.
(*) The author is an economic observer from the Urban Catalyst Institute.
