By: Dewi Widyaningrum )*
In an increasingly uncertain global economic landscape, Indonesia has demonstrated resilience that deserves appreciation. National economic growth of 4.87 percent (year-on-year/yoy) in the first quarter of 2025 reflects that Indonesia’s economic foundation remains solid, despite being hit by various pressures from abroad. This resilience did not come by chance, but rather the result of synergy between responsive fiscal and monetary policies, as well as the sustainability of the government’s priority programs in maintaining people’s purchasing power and strengthening the real sector.
When major trading partner countries such as the United States and Germany recorded a slowdown, even a contraction in growth, Indonesia was able to record positive performance. Chief Economist of Trimegah Sekuritas Indonesia, Fakhrul Fulvian, said that this achievement was very good and a symbol of national economic stability amidst the global storm. This growth achievement is very good, amidst the pressure of global economic growth, where most of Indonesia’s trading partner countries are also experiencing an economic slowdown. He added that the 4.87 percent growth was a reflection of the government’s success in maintaining the continuity of fiscal policy and encouraging the private sector to revive after the political year.
The main component of expenditure was household consumption, which grew by 4.89 percent. The momentum of Ramadan, Eid al-Fitr, and early year holidays also contributed to the increase in public consumption. The government carefully intervened by providing Eid Allowances (THR), electricity and toll incentives, and maintaining food price stability through the role of Bulog which was strengthened by an injection of APBN funds. These steps not only kept inflation under control but also protected the purchasing power of the wider community.
Fakhrul Fulvian also assessed that the contraction in government spending of -1.38 percent actually showed a recovery towards fiscal discipline after the 2024 Election. According to him, the smooth transition of government was an important factor in maintaining the stability of market expectations.
Minister of Finance Sri Mulyani Indrawati stated that the Indonesian economy was still showing resilient performance. Amid global uncertainty, she emphasized that the APBN was working optimally to maintain macro stability and protect the community. In his statement, he highlighted that fiscal policy is directed to continue to encourage productivity, accelerate spending absorption, and support priority programs such as Free Nutritious Meals and Housing Financing Liquidity Facility (FLPP).
In terms of production, the agricultural sector recorded a striking growth of 10.52 percent. The massive distribution of subsidized fertilizers and the increase in national rice production by 60 percent (yoy) played a major role in this achievement. In fact, the April 2025 Rice Outlook data shows that Indonesia is the country with the highest rice production in ASEAN, namely 34.6 million tons or growing by 4.8 percent (yoy). This proves that national food security is not only maintained, but also experiencing significant strengthening.
Other sectors also showed similar resilience. The processing industry grew by 4.55 percent, trade by 5.03 percent, transportation and warehousing by 9.01 percent, and accommodation and food and beverages by 5.75 percent. This indicates that domestic economic activity continues to roll actively, especially in sectors that directly touch the needs of the community.
In terms of employment, Indonesia has also recorded significant progress. The unemployment rate fell from 4.82 percent to 4.76 percent, the lowest in the last five years. A total of 3.59 million new jobs were created between February 2024 and February 2025, most of which were full-time.
Macroeconomic stability is also an important aspect in maintaining market confidence. Chief Economist Juwai IQI, Shan Saeed, assessed that the 4.87 percent economic growth was the result of a positive atmosphere created by the government. He said that Bank Indonesia played a central role in maintaining macro balance, and this success was a reflection of investor and market player confidence in the direction of national economic policy. Saeed was also optimistic that with a projected growth of 4.5–5.5 percent throughout 2025, consumption and investment would remain the main pillars of the national economy.
Not only domestically, the government is also actively maintaining Indonesia’s position on the global stage. The economic diplomacy strategy continues to be strengthened through active participation in international forums such as the Spring Meeting, G20, and ASEAN+3. This effort is also accompanied by mapping of superior export products to various non-traditional markets such as the European Union and BRICS, opening up opportunities for market diversification while reducing dependence on certain trading partners.
The government is also not turning a blind eye to the challenges ahead. Global uncertainty, price fluctuationscommodities, and the potential for supply chain disruption are still real risks. Therefore, medium and long-term strategies such as trade and investment deregulation, the formation of a labor task force, and the protection of micro and small businesses continue to be intensified. The goal is clear: to maintain economic stability and ensure inclusive growth so that the benefits are felt by all levels of society.
Overall, the Indonesian economy has shown strong resilience amid the global economic downturn. This achievement is not only an indicator of technocratic success, but also an important foundation in navigating a future full of dynamics. The key is policy continuity, strengthening the domestic sector, and collaboration between the government, business actors, and the community. If this direction continues to be maintained, Indonesia will not only be able to survive, but will also grow into an economic power that is increasingly reckoned with on the global stage.
)* Observer of Economics and Public Policy
