JAKARTA - Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that the Government is optimistic that the economic growth target listed in the APBN can be achieved.
He explained that before the coordination meeting took place, a special meeting had been held with the relevant ministries to discuss strategic steps to encourage economic growth.
Airlangga added that one of the main opportunities highlighted was the implementation of the Indonesia-European Union Comprehensive Economic Partnership Agreement (EU-CEPA) which was officially signed.
"We hope that the economic growth included in our APBN can be achieved. Earlier we also had a special meeting before this meeting with the relevant ministries how we can boost economic growth with the first of course the EU-CEPA has been signed," he said at a press conference, Monday, July 21.
Airlangga emphasized that to maximize the benefits of the agreement, the national industry must have adequate competitiveness and production capacity.
"So this is the opportunity next year because almost all of our products export to Europe so that they enter zero. Yes, of course, we see that all industries must be competitive. Second, we must have capacity, so we don't have low tariffs but our export capacity is limited," he said.
Previously, the Director General of Economic and Fiscal Strategy of the Ministry of Finance (Kemenkeu) Febrio Nathan Kacaribu expressed optimism for the prospect of Indonesia's economic growth in the second half of 2025.
He conveyed that one of the driving factors was the success of negotiating the import rate with the United States to 19 percent.
"Economic growth, especially with Trump tariffs, which we negotiate successfully from 32 percent, down to 19 percent. We see that in the second half of our exports will be quite more resilient so we see opportunities for economic growth to reach around 5 percent," he told the media crew when met at the Coordinating Ministry for Economic Affairs, Monday, July 21.
He added that this momentum opens up opportunities to encourage faster economic growth, between the success of the negotiating team resulting in relatively better agreements than many other countries.
On the other hand, Febrio also highlighted important developments in cooperation between Indonesia and the European Union through the Comprehensive Economic Partnership Agreement (EUCEPA) where after a 10-year negotiation process, an agreement was finally reached.
"With the President (Prabowo Subianto) meeting yesterday was a very historical deal too, it has been 10 years of agreement, finally we can deal and it will bring not only trade but also investment flows to Indonesia from the European Union, so this is the momentum that we will use for the second half of 2025," he said.
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Febrio explained that Indonesia's exports to the European Union have been dominated by natural resource products, one of which is palm oil and through an agreement with CEPA, Indonesia can now increase the volume of palm oil exports to the European market, which is expected to be one of the drivers of national export growth.
Meanwhile, he conveyed that for the United States market, Indonesia's main export product is electronic equipment such as electronic routers and hopes that export trends to the US will continue.
In addition, he added that the textile, footwear, and furniture sectors also showed double-digit export growth in the first half of 2025, and this trend is expected to continue in the second half.
"Teman-teman pelaku usaha juga sangat menyambut baik tariff yang lebih rendah dibandingkan banyak negara lain tersebut sehingga ekspor yang sudah berjalan double digit di paruh pertama pertumbuhannya ke Amerika itu kita harapkan bisa berlanjut di paruh kedua 2025 ini. Jadi ini berita yang sangat positif, kita berharap kita bisa menggunakan momentum ini," pungkasnya.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
