Government Confident Economic Growth Of The Republic Of Indonesia 2025 Reaches 5.2 Percent

Deputy for Business Management and Development of State-Owned Enterprises, Coordinating Ministry for Economic Affairs Ferry Irawan. (Photo: YouTube screenshot)

JAKARTA - The government emphasizes that national economic resilience is still strong, even though the pressure from global economic conditions remains high.

Deputy for Business Management and Development of State-Owned Enterprises, Coordinating Ministry for Economic Affairs Ferry Irawan said that a number of policies that have been implemented by the government are expected to be able to maintain the pace of economic growth in the third and fourth quarters of 2025, so that the target for economic growth in the 2025 State Budget of 5.2 percent is believed to be achieved.

He added that the current domestic economy is the main motor in the midst of various global challenges and dynamics where in the second quarter of 2025 economic growth still reached 5.12 percent, and cumulatively the first half was in the range of 5 percent.

"With the various policies we have implemented, hopefully later in the 3rd quarter and later in the 4th quarter we can continue to accelerate so that we can achieve the growth target in the 2025 State Budget at 5.2 percent," he said at the Sarasehan 100 Economist Indonesia event, Tuesday, October 28.

Ferry added that the achievement of growth in the second quarter of 2025 which reached 5.12 percent reflects solid domestic economic resilience.

"This is a reflection of domestic economic resilience because 5.12 (percent) is mostly or around 82 percent, the source is domestic, either through consumption or from investment," he said.

He emphasized the importance of maintaining this positive momentum to continue until the end of the year, while strengthening the contribution of the external sector through various strategic policies.

"If we compare it with other countries, there can be no discussion whether 5 percent is enough or not, but the facts are compared to other countries, with the dynamics that we were still strong enough, growing around 5.12 percent in the second quarter. We are still below India, Argentina, China, but still more (good) than some of our peer countries. For example Singapore, then Malaysia and other countries," he said.

Furthermore, Ferry emphasized the importance of maintaining the quality of economic growth, not only in terms of numbers, but also in terms of equity and social resilience.

He said that one of the indicators that was closely guarded was inflation, which until September 2025 was recorded at 2.65 percent.

The government hopes that inflation will remain under control until the end of the year, in the range of 2.5 percent plus minus 1 percent.

"We control this inflation well, we have an inflation control team and we have institutional mechanics from the center, regions and central coordination with the regions. So we hope that later in 2025 to 2026 inflation can be maintained," he explained.

"Of course what we are looking at now is the volatile food component, this is at September 6.4. Later with a series of policies that we are doing to make it easier for us to maintain at a level below 5 percent in accordance with the direction of the high level meeting at the control team of central inflation," he added.

Ia juga menyoroti capaian positif dalam indikator sosial lainnya yaitu tingkat kemiskinan terus menurun dan kini mencapai 8,47 persen, menjadi yang terendah sepanjang sejarah.

Sebagai informasi, target pertumbuhan ekonomi 2025 ini lebih tinggi dibandingkan realisasi pada 2024 yang hanya mencapai 5,03 persen.

He also highlighted the positive achievement in other social indicators, namely the poverty rate continued to decline and now reached 8.47 percent, being the lowest in history.

For information, the 2025 economic growth target is higher than the realization in 2024 which only reached 5.03 percent.