The Indonesian government is reinforcing the country’s economic resilience through focused investment strategies and initiatives to strengthen public purchasing power. Despite ongoing global challenges, Indonesia’s economy showed stability with 4.87% growth in Q1 2025, and the government remains optimistic about reaching the year-end target of 5.2%. Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that strategic policies, such as expanding social protection programs—PKH, Kartu Sembako, and MBG—are key to sustaining household consumption and driving broader economic growth. Additionally, measures like electricity and airline ticket discounts during holidays have proven effective in stimulating domestic spending and will be extended to other sectors.
To support investment, the government is streamlining regulations and revising the Presidential Regulation on business sectors for investment. A newly formed task force is also working to accelerate job creation. According to Riyatno, Deputy at the Ministry of Investment, digital infrastructure is a top national investment priority, with data center and digital ecosystem investments projected to reach USD 130 billion by 2025. He highlighted cross-sector collaboration—among government, industry, and academia—as crucial to fostering innovation and accelerating digital transformation. As global uncertainties, such as tariff wars and geopolitical tensions, put pressure on exports, the government remains focused on strengthening domestic economic drivers while maintaining fiscal efficiency. These integrated strategies aim to position Indonesia as a more inclusive, competitive, and future-ready economy.
