JAKARTA - Amid global challenges and world economic growth projected by the IMF, OECD, and the World Bank in the range of 2.6 percent to 3.3 percent, Indonesia was able to record a solid economic performance.
In 2025, Indonesia's economic growth reached 5.11 percent, making it one of the highest among G20 countries.
This resilience is supported by strong domestic demand through consumption, investment, and government spending, and is strengthened by external stability, disciplined policies, and good inter-institutional coordination.
Household consumption remains the main engine with a contribution of 54 percent to GDP, and this is reflected in the Mandiri Spending Index which is at a high level, namely 360.7.
In the food sector, national rice production has reached almost 34.7 million tons, with Bulog rice reserves approaching 4.6 million tons - one of the largest in Indonesia's history.
Meanwhile, the energy sector continues to be strengthened through the implementation of the B50 program, with an energy surplus of 4.84 million kiloliters.
Coordinating Minister for the Economy Airlangga Hartarto expressed optimism about economic growth this year, which is projected to exceed 5.3 percent, with an estimated growth in the first quarter of around 5.5 percent.
"The economic growth projection this year is above 5.3 percent. And in the first quarter of this year, it is optimistic that Indonesia's economic growth will be around 5.5 percent," he said in a statement, Tuesday, April 14.
Furthermore, Airlangga also conveyed that Indonesia's economy entered the second quarter of 2026 in a solid condition, this was marked by controlled inflation, a trade balance surplus for 70 consecutive months, and a high level of consumer confidence.
In addition, the manufacturing sector is still in an expansion phase with an index of 50.1, foreign exchange reserves are strong at US$148.2 billion, and the banking sector shows healthy fundamentals with strong capital and maintained credit risk.
Externally, the increase in exports of flagship commodities such as coal, rubber, nickel, copper, and aluminum which reached 47 billion US dollars also helped to mitigate pressure from the oil and gas sector.
Meanwhile, the state budget will continue to play a role as an economic support through various stimuli such as food assistance, transportation discounts, fuel subsidies, and compensation totaling around Rp. 11.92 trillion, and the state budget deficit will also remain under control at the level of 0.93 percent of GDP as of March 2026.
"Then the transaction of Indonesian local currency in 2025 increased to 25.6 billion US dollars. This figure is double compared to 2024, with countries such as Malaysia, South Korea, Thailand, Japan, and China, which have accepted Indonesian QRIS payment transactions," said Airlangga.
Improvements are also seen in social and economic indicators such as the poverty rate decreasing to 8.25 percent, the unemployment rate decreasing to 4.7 percent, and the gini ratio improving to 0.363.
In line with this, the quality of growth has also increased in line with the realization of investments that are able to absorb around 2.71 million new workers throughout 2025.
In addition, Airlangga said that the downstream program driven by President Prabowo Subianto also showed positive results, namely in 2025, investment in this sector reached IDR 584.1 trillion (36.5 billion US dollars), grew 43.3 percent (yoy), and contributed 30.2 percent to total national investment.
He added that the mineral and coal sectors were the largest contributors, followed by plantations, forestry, and the oil and gas, fisheries, and marine sectors.
The government continues to improve ease of doing business through the formation of the P2SP Task Force and regulatory reform through PP Number 28 of 2025.
According to him, this effort includes simplifying SLA-based licensing, strengthening the risk-based approach, and digitization through OSS-RBA.
He added that the Special Economic Zone (KEK) is also continuing to grow as a growth center in the advanced manufacturing sector, downstream, digital economy, tourism, and health.
In international cooperation, Indonesia has noted various strategic advances, including with the European Union, Canada, and the Eurasian region, as well as strengthening its role in global forums such as BRICS, G20, OECD, RCEP, ASEAN, and CPTPP.
Airlangga emphasized that the energy subsidy policy is still aimed at maintaining price stability and supporting economic growth, and in the midst of the dynamics of world oil prices, the government is also preparing adequate fiscal space for periodic policy evaluation.
Meanwhile, he added that foreign investment interest continues to increase, especially in the energy, semiconductor, and data center sectors.
"Indonesia has land, Indonesia has competitive energy prices, and we also have clean energy. Our water prices are also competitive. So, most US companies, or even regional companies, including China, are committed to investing in Indonesian data centers. Indonesia has a population of more than 280 million people. I think digital is one of the things that is still attractive to most investors, especially with AI, quantum computing, they need more data centers," concluded Airlangga.
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