Airlangga Forecasts That Indonesia's Economy Will Remain Stable At 5.2 Percent In 2025

ANTARA/HO-Kementerian Koordinator Bidang Perekonomian

Airlangga Forecasts That Indonesia's Economy Will Remain Stable At 5.2 Percent In 2025

Thursday, 16 Jan 2025

Coordinating Minister for Economic Affairs Airlangga Hartarto has projected that Indonesia's economic growth will remain stable at approximately 5.2 percent in 2025.

He believes that despite the uncertainties in the global economy, Indonesia's economy is expected to demonstrate resilience and competitiveness, achieving a solid growth rate of 4.95 percent (year-on-year) in the third quarter of 2024. This performance surpasses that of several other countries, including Thailand and South Korea.

"Hopefully, we can maintain around 5.2 percent for Indonesia's economy in 2025. Last year, we implemented several programs leading up to Christmas, such as the National Online Shopping Day (Harbolnas), 'Shop in Indonesia' (BINA), discount initiatives, and food price stabilization programs," Airlangga stated during the Business Competitiveness Outlook 2025 event, as reported in Jakarta on Tuesday.

The various year-end programs promoted by the government have achieved impressive targets, with Harbolnas transactions reaching IDR 31.2 trillion, reflecting a 21.4 percent increase from 2023, BINA transactions totaling IDR 25.4 trillion, a 15.5 percent rise from 2023, and EPIC Sale transactions amounting to IDR 14.9 trillion, marking a 14.9 percent increase from the previous year.

Furthermore, Airlangga indicated that to sustain growth momentum, the government has also introduced several Economic Stimulus Packages released at the end of 2024.

These stimuli are aimed at various segments of society to maintain purchasing power and enhance business competitiveness, including a monthly rice assistance of 10 kg for 16 million beneficiary families, a 50 percent electricity discount for two months, as well as property and automotive VAT incentives and income tax relief for labor-intensive sectors.

Looking ahead, President Prabowo Subianto has set a target for economic growth to reach 8 percent by optimizing various potential sectors.