Indonesia's Economic Optimism for 2025: Government Strategies and Sustainable Growth Potential

Fri, 17 Jan 2025 07:28 | News | Editorial INTI

Jakarta, INTI - Indonesia continues to demonstrate its economic resilience amidst global challenges, recording a solid economic growth of 4.95% (YoY) in Q3-2024. This performance reflects the competitiveness of the national economy, supported by positive indicators such as a Manufacturing PMI at an expansive 51.2, a Consumer Confidence Index (CCI) of 127.7, and positive growth in the Real Sales Index (RSI).

What strategies is the government implementing to maintain this momentum? This article explores strategic measures, the latest data, and unique perspectives to understand Indonesia’s economic policy direction in 2025.

Economic Growth in 2024: A Strong Starting Point
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia's economy is projected to grow by 5.1% in 2024. The government is optimistic, especially following strategic policies ahead of Christmas and New Year, such as free homecoming programs, airline ticket discounts, online shopping festivals generating IDR 31 trillion, the BINA program contributing IDR 25.4 trillion, and the EPIC Sale contributing IDR 14.9 trillion.

"These policies have successfully boosted domestic consumption, which remains a key driver of economic growth," Airlangga emphasized at the MNC Economic Outlook 2025 event in Jakarta on Monday, January 13.

Economic Stimulus and Middle-Class Support
At the end of 2024, the government rolled out various stimulus packages, including food assistance, a 50% electricity discount, tax incentives for property and automotive sectors, and income tax exemptions for labor-intensive industries.

“The middle class, which constitutes 66.35% of the population, is a vital asset supported through subsidies, tax incentives, business financing access, and human resource capacity building,” added Airlangga.

Downstreaming and Economic Transformation
Downstreaming has been a strategic step to increase economic value. Exports of processed nickel products in 2023 reached USD 33.52 billion (IDR 520 trillion), a significant increase from USD 4 billion in 2017.

“We have witnessed the positive impact of Special Economic Zones (SEZs) in areas like Gresik, Kendal, and Galang Batang. Downstreaming not only enhances value addition but also boosts global competitiveness,” Airlangga noted.

In 2024, SEZs successfully attracted IDR 82.6 trillion in investments and created jobs for 42,930 people. Since 2012, cumulative investments in SEZs have reached IDR 256.7 trillion, absorbing 156,208 workers.

KUR Program for MSMEs and Digital Innovation
To support MSMEs, the government disbursed IDR 282.44 trillion through the People's Business Credit (KUR) program in 2024, exceeding the target of IDR 280 trillion. This financing was provided to 4.95 million borrowers.

“The KUR program will continue to optimize funding for productive sectors, including digital transformation and human resource development,” Airlangga stated.

Priority Programs and Collaboration Towards Golden Indonesia 2045
President Prabowo Subianto has outlined 17 Priority Programs, ranging from food self-sufficiency and energy development to poverty alleviation. Concrete steps are evident in Indonesia’s inclusion in BRICS and the launch of the Free Nutritious Meal Program.

Airlangga noted that achieving economic growth of 8% over the next five years requires adaptation, innovation, and collaboration from all stakeholders. Media groups like MNC are expected to be strategic partners in delivering relevant information to the public.
Indonesia begins 2025 with a strong economic foundation and well-planned strategies. Downstreaming, middle-class support, SEZ investments, and the KUR program for MSMEs are concrete steps toward promoting sustainable economic growth.

With a spirit of collaboration, innovation, and sustainability, Indonesia remains optimistic about achieving the vision of Golden Indonesia 2045.