Minister of Economy Airlangga Hartarto stated that Indonesia's economic growth is showing positive signs. Moreover, Indonesia's economic growth outperforms that of other ASEAN and G20 countries. According to data from the Indonesia Statistics (BPS), Indonesia's economic growth in Q2 of 2025 was 5.12% year-on-year, compared to the same period last year. Airlangga also highlighted that Indonesia's labour absorption has increased, with 97.73% of the workforce absorbed, equivalent to 3.59 million people in that year. Furthermore, Airlangga stated that President Prabowo Subianto also views competitiveness as crucial, given that we are competing with various countries. Therefore, the government has issued regulations related to business licensing, and streamlining business licensing procedures must be prioritised.
Airlangga explained that in order to maintain growth, the government needs to encourage household consumption and purchasing power in the second semester. Several flagship programmes are being promoted, such as investment, exports through regions, and credit implementation. In terms of housing, there is FLPP and KUR support available. The president has instructed the involvement of micro, small and medium enterprises (MSMEs) contractors to encourage the construction sector. Non-MSME contractors are expected to participate in housing construction that does not utilise the KUR program. The government will also continue the Government-Bearing Value-Added Tax (PPN DTP) at 100% until the end of this year. Furthermore, the government are preparing support programs for Christmas and New Year, and is encouraging labor-intensive sectors to accelerate their production until the end of this year. Airlangga further elaborated that all programmes pertaining to non-budgetary matters must be promoted by ministries and agencies in accordance with the President's instructions. Investment is recognised as a key driver of future economic growth. The IDR 1,900 trillion investment target for 2025 is achievable, as the first half of the year has already seen the realisation of investments.
