Rejecting Economic Weakening Claims: Government Demonstrates Real Measures to Safeguard Public Welfare
By: Rinaldi Putranto)*
Recently, there have been growing claims suggesting that Indonesia’s economy is weakening. In fact, these claims are not accurate, as the government remains firmly committed to maintaining economic growth for the well-being of its people.
The government asserts that Indonesia’s economy remains on a positive trajectory. Key indicators such as GDP growth, stable exchange rates, and controlled inflation demonstrate that the economy is still resilient. Core sectors like manufacturing, tourism, and the digital economy are showing promising recovery. Despite this, the narrative of economic decline often stems from specific groups aiming to cause public unrest, rather than being based on valid data or facts.
The government is not passive in facing economic challenges. Various concrete steps have been taken to support communities and small businesses affected by global uncertainties. Social assistance programs such as the Family Hope Program (PKH), direct cash assistance (BLT), food subsidies, as well as fuel and electricity subsidies continue to be rolled out to ease the burden on the public. These efforts aim to sustain household purchasing power, especially for vulnerable groups. The government also subsidizes public transportation fares to keep prices affordable and prevent excessive inflation.
In addition, the government is focused on supporting entrepreneurs, particularly Micro, Small, and Medium Enterprises (MSMEs). Alongside economic recovery efforts, the government offers low-interest financing, training, and tax incentives to help MSMEs grow and remain competitive internationally. These programs aim to accelerate and distribute economic growth more evenly, maximizing the potential of MSMEs as the backbone of the national economy.
Beyond direct support, infrastructure development remains a key priority. Projects including roads, bridges, airports, and ports are expected to generate employment opportunities and enhance logistics efficiency. Furthermore, the government prioritizes digital economy transformation, recognizing its vast potential to boost efficiency and global competitiveness. Digital technology is being leveraged to streamline business processes and broaden market access for entrepreneurs.
With ongoing infrastructure projects, the government expects to not only improve regional connectivity but also unlock broader business opportunities. Digitalization is also being promoted in public services and banking sectors. This digital transformation will lead to more efficient administration and lower operational costs for businesses.
Addressing recent economic developments, Finance Minister Sri Mulyani Indrawati stated in March 2025 that despite global market challenges, Indonesia’s economy remains fundamentally strong. She reaffirmed the government’s commitment to maintaining fiscal discipline, with the budget deficit kept under 3% of GDP.
According to her, steady tax revenues and successful bond auctions are indicators that investors continue to trust Indonesia’s economy. This demonstrates that despite external pressures, Indonesia remains attractive as an investment destination.
Bank Indonesia Governor Perry Warjiyo echoed this optimism in March 2025, projecting Indonesia’s economic growth to reach between 4.7% and 5.5% this year. This is driven by strong household consumption and a growing manufacturing sector. He emphasized the importance of increasing private sector investment to maintain this positive momentum and stimulate domestic economic expansion.
Moreover, the government is focusing on developing sustainable sectors, particularly the green economy. This initiative aims to minimize environmental impact while creating new job opportunities. As global attention shifts toward sustainability and eco-friendly practices, Indonesia seeks to leverage this momentum by investing in renewable energy, waste management, and sustainable agriculture.
Ultimately, while some remain pessimistic about the economic outlook, the public is encouraged to respond wisely to these narratives. With transparent, sustainable, and inclusive policies, Indonesia is well-positioned to maintain stable economic growth. Collaboration between the government, businesses, and citizens will be key to overcoming challenges and ensuring continued national progress amid global uncertainty.
Through these concrete actions, the government is not only maintaining economic stability but also preparing Indonesia to face ongoing global economic challenges. It is, therefore, crucial for the public to remain optimistic and not be swayed by unfounded negative rhetoric. All stakeholders must work together to ensure Indonesia remains strong and resilient in the face of future uncertainties.
*)Strategic Issues Analyst
