Palace Says Economy Grows 5.12 Percent As A Result Of Successful National Transformation Strategy

Illustration of traditional markets. (Unsplash-Falaq Lazuardi)

Head of the Presidential Communication Officer (PCO) Hasan Nasbi revealed that President Prabowo Subianto appreciated the achievement of national economic growth reaching 5.12 percent in the second quarter of 2025.

According to Hasan Nasbi, this was conveyed by the President at the Plenary Cabinet Session, Wednesday, August 6. On that occasion, he said, Prabowo considered this growth as proof that the national transformation strategy was on the right track.

"Yesterday, the President was optimistic, the President said, with economic growth like this, it means that our national transformation strategy is on the right path," Hasan said at a press conference at the PCO Office, Jakarta, Thursday, which was confiscated by Antara.

The President also expressed his special appreciation for the achievement of investment in Indonesia, which until now continues to show a positive trend.

As of August 2025, Hasan said, investment realization in Indonesia has reached IDR 942.9 trillion, or almost 50 percent of this year's target of IDR 1,900 trillion.

This investment realization creates 1,259,868 jobs. So this is not a commitment or promise, but an investment that has actually been realized. They are already spending here," he said.

The top five countries that contributed the largest investment to Indonesia were Singapore amounting to 8.8 billion US dollars, followed by Hong Kong and China, which in combination exceeded 8 billion US dollars, Malaysia 1.7 billion US dollars, and Japan 1.6 billion US dollars.

The investment is spread in five main sectors, namely the basic metal industry, the transportation and telecommunications industry, the mining, services sector, and the housing sector and industrial estates.

Hasan explained that the manufacturing industry sector recorded growth of 5.6 percent, while the investment sector grew 6.99 percent. Both sectors contributed significantly to the national economic growth in the second quarter of 2025 which reached 5.12 percent.

As a background, in the fourth quarter of 2024 when President Prabowo took office, economic growth was recorded at 5.02 percent. It fell in the first quarter of 2025 to 4.87 percent.

"The second quarter rose 5.12, and it was issued by the same government, by the same BPS," he said.