Indonesia targets 5-5.2% economic growth in 2025
Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has outlined the government’s strategies to achieve the national economic growth target of 5-5.2%, starting in Q2/2025.
In Jakarta, Indonesia. Photo courtesy of Xinhua.
Investment remains the main driver of growth. In H1/2025, realized investment reached IDR924 trillion (around $57 billion), alongside a 32.5% year-on-year increase in capital goods imports.
State-owned enterprises (SOEs) capital expenditure and government capital spending, which stood at 17.94% in H1, will support productivity into next year, Hartarto said.
To sustain growth, he added, the government will continue its fiscal stimulus policy in H2/2025.
Regarding state expenditure, it aims to accelerate budget disbursement, targeting at least 25% of the 2025 State Budget, equivalent to IDR694 trillion. Several concrete programs have been prepared to support people’s purchasing power.
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