By: Anwar Gani
Amid various global dynamics and challenges, Indonesia’s economy has demonstrated resilience and a positive growth trajectory. Claims that Indonesia is in “dark times” due to a struggling economy are inconsistent with existing data and reality. On the contrary, the national economy continues to grow steadily and reflects strong fundamentals. Through cooperation between the government and all economic actors, Indonesia has managed to maintain its growth momentum and continue moving in a better direction. It is crucial for all elements of the nation to reject the “Dark Indonesia” provocation and promote data-based optimism that the Indonesian economy is steadily growing despite global challenges.
In the first quarter of 2025, Indonesia’s economy grew by 4.87% year-on-year. This figure not only proves that the national economy is functioning well, but also demonstrates resilience amid external pressures such as geopolitical uncertainty and increasing global protectionism. Compared to several ASEAN countries and G20 members, Indonesia’s growth remains higher, highlighting the strength and great potential of its economy.
This growth is driven by the strengthening of several strategic sectors. Household consumption remains the main driver, contributing the largest share to GDP. In Q1 2025, household consumption grew by 4.89%, in line with increased economic activity during Ramadan and Eid al-Fitr. In addition, the export sector recorded positive performance, growing by 6.78%, supported by a surge in non-oil and gas exports and an increase in international tourist arrivals.
Across business sectors, almost all areas experienced positive growth. The agricultural sector saw a significant increase of 10.52%, thanks to a smooth harvest season and improved productivity. The manufacturing sector, as the main contributor to national GDP, grew by 4.55%, contributing 19.25% to the economy. Trade also grew by 5.03%, making it one of the key pillars driving the economy alongside agriculture and manufacturing.
According to Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, nearly all business sectors recorded healthy growth. Manufacturing, trade, agriculture, and construction are the four sectors with the largest GDP contributions and are operating steadily and productively. This shows that Indonesia’s economic structure is not only strong but also continues to develop with an increasingly balanced foundation across sectors.
Economic growth has also had a direct impact on employment. As of February 2025, there were 3.59 million additional workers employed, with the trade sector contributing nearly one million and manufacturing around 720,000 jobs. This indicates that Indonesia’s economic growth is not just numerical but also brings tangible benefits to public welfare, especially through job creation.
From an external standpoint, although foreign exchange reserves declined from USD 157.1 billion to USD 152.5 billion, they remain within safe limits. Indonesia’s reserves are still equivalent to 6.4 months of imports—well above the international minimum threshold of three months. This is a key indicator that Indonesia’s external sector resilience is well maintained.
Responding to the current economic situation, Finance Minister Sri Mulyani stated that the government will accelerate the realization of productive state spending. Budget priorities are directed toward generating direct economic impact, such as the expanding Free Nutritious Meals (MBG) program. The government is also strengthening the housing sector through enhanced fiscal incentives and financing, including the FLPP program, which now targets more beneficiaries.
This acceleration in government spending is part of mitigation efforts against global uncertainties and a strategy to maintain purchasing power and support the business sector. The government is also implementing various structural adjustments through deregulation, the establishment of labor task forces, and strengthening fiscal policy to ensure that the national budget (APBN) functions optimally in supporting inclusive and sustainable economic growth.
Furthermore, economic diplomacy efforts are being strengthened through bilateral cooperation and active participation in multilateral forums. The goal is to safeguard global market access and enhance the competitiveness of national products amid a challenging international trade landscape.
Deputy Speaker of the Indonesian House of Representatives (DPR RI), Sufmi Dasco Ahmad, emphasized that all elements of the nation must unite and focus on building economic strength. Collaboration between the government, workers, and businesses is key to facing challenges and ensuring that economic development is not disrupted by baseless narratives. He stressed the importance of maintaining a spirit of unity and optimism, as with solidarity, Indonesia will continue to progress.
Overall, the data and policies indicate that Indonesia is in a stable and promising economic condition. The government is actively maintaining growth momentum, ensuring that economic benefits reach the wider population, and continuously enhancing national competitiveness. There is no reason to doubt the current direction of Indonesia’s economy.
Narratives of uncertainty or skepticism regarding the national economic condition must be countered with objective data and logic. Indonesia is not experiencing an economic crisis but is undergoing a measured, resilient, and adaptive development process. The Indonesian economy is doing well, and going forward, its prospects are increasingly promising—built on sound policy foundations and cooperation from all sectors.
The author is an economist and public policy analyst.
