Government Strengthens Business Climate And Optimizes National Economic Transformation

Coordinating Minister for the Economy Airlangga Hartarto (Photo: dock. VOI)

JAKARTA - The government affirms its commitment to continue to create a more conducive business climate through simplification of regulations, providing targeted incentives, and ensuring long-term policy.

Coordinating Minister for Economic Affairs Airlangga Hartarto said that with this support, the capability, innovation, and investment of the private sector is believed to be the main motor that brings national development to a more advanced and competitive level.

For information, Indonesia's economic growth in the third quarter of 2025 was 5.04 percent (yoy); the Manufacturing PMI was at the level of 53.3 in November 2025; the JCI reached 8,640, a prospect for the development of the real sector.

Furthermore, inflation in November 2025 was 2.72 percent (yoy); Credit growth in October 2025 of 7.36 percent (yoy); consumer confidence index of 121.2 in October 2025; and public spending also strengthened, where Mandiri Lending Index Mid was 312.8 in November 2025.

We see with a situation like this, as well as geopoliticals in the first quarter, where high uncertainty and in the second quarter US President Donald Trump imposed a high tariff but Indonesia managed to negotiate from 32 down to 19 percent. So almost all headwind issues in 2025 have already priced in at our rupiah value, in our shares, at our interest rate level. So we see that the 2026 growth has a higher potential for upside risk than the downside risk. Indonesia sees that the baseline rather than the growth of 5.4 from the state budget. So of course there is not much bad news will come up in the next few years," he said in his statement, quoted Friday, December 5.

Airlangga also added that various international institutions, including the World Bank and IMF, provide a more optimistic view of the global economic outlook at the G20 meeting in South Africa.

He added that Indonesia and the ASEAN region are considered as bright points for the global economy, especially because ASEAN is currently the region with the highest regional economic growth.

Airlangga said that in the future, the dynamics of Indo-Pacific with China, ASEAN, Japan, and Korea as the driving force is expected to be the main driving force for the world economy.

He explained that in an effort to become a high-income country, the Government continues to accelerate economic transformation through strengthening downstream industry, developing a green economy, and accelerating digitalization.

As for January -September 2025, downstream investment has reached IDR 413.4 trillion.

In the future, he conveyed that downstreaming was expanded to the bauxite, copper, tin, seaweed, modern agriculture, and the electric vehicle (EV) battery ecosystem.

Meanwhile, in the green economy, Indonesia has the potential for carbon absorption (CCS) of up to 600 gigatons. Meanwhile, Indonesia's digital economy value is estimated to increase from U90 billion US dollars in 2024 to 360 billion US dollars by 2030.

"Various programs to increase the capacity of digital talent are also encouraged, such as Digital Talent Scholarship, HUB ID, and the Internship Program," he said.

Airlangga explained that the government is currently perfecting the Indonesian Business Field Baku Classification (KBLI), including separating recycling activities from waste management into special categories.

"Yesterday, we also just repaired the KBLI, where in the future it will be important related to the recycle. And the recycle we will also separate the recycle and garbage activities with certain KBLIs. So that we can encourage carbon capture and storage that is already in separate KBLI and also recycle because it is part of green manufacturing," said Airlangga.

In addition, the Government has also prepared various stimuli in the form of tariff discounts and event events to increase community mobility and spending, including the Transportation Discount on December 22, 2025 January 10, 2026, 37 major year-end events, and the National Shopping Program such as EPIC Sale, Harbolnas, and BINA Indonesia Great Sale with a total transaction target of IDR 110 trillion.

"Of course next year, the year of determination, and I hope that the CEOs can be optimistic and can encourage investment and create very necessary jobs. And Indonesia hopes that as a locomotive in ASEAN, we will encourage not only development in terms of numbers, but also development which is sustainable and inclusive," he concluded.