Indonesia continues to expand its global economic presence through active participation in G20, ASEAN, BRICS, and bilateral cooperation, including with India. Coordinating Minister for Economic Affairs Airlangga Hartarto, speaking virtually at the India-Indonesia Synergy Investment Forum (6/12), highlighted that Indonesia's economy is projected to grow 5% in 2024 and 5.2% in 2025, with a long-term goal of 8% by 2029. Achieving this requires industrial downstreaming, strengthening the digital economy, developing semiconductor ecosystems, and transitioning energy systems. In 2023, trade with India reached USD 27 billion, growing at an annual rate of 20%. Airlangga emphasized that building stronger links between “Made in Indonesia” and “Made in India” would maximize economic potential, particularly in digital, healthcare, MSMEs, and other strategic sectors.
Airlangga noted Indonesia’s success in industrial value addition, particularly in nickel exports, which grew from USD 4 billion in 2015 to nearly USD 35 billion in 2023. He urged expanding downstream initiatives to other sectors, including agriculture. Despite economic slowdowns in key partners like China, Indonesia's fundamentals remain strong, with inflation at 1.71% (YoY) and a debt-to-GDP ratio below 40%. Special Economic Zones (SEZs) play a key role in attracting investments, with 22 active sectors and seven more under development, focusing on industrial hubs, healthcare, and digital infrastructure. Encouraging deeper collaboration, Airlangga concluded that strong Indonesia-India partnerships would drive mutual prosperity and economic resilience for both nations.
