ASIATODAY.ID, JAKARTA — The International Monetary Fund (IMF) has recognized Indonesia as a bright spot amid growing global economic uncertainty.
This acknowledgment reflects the nation’s solid economic fundamentals and its resilience in the face of geopolitical tensions, slowing global trade, and volatile financial markets.
Marking the first year of the administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka, Indonesia has implemented a series of strategic policies that have kept economic growth robust and inclusive. The national economy grew 5.12% in the second quarter of 2025, one of the highest among G20 countries, while inflation remained steady at 2.5±1%, among the lowest globally.
“The IMF stated that amid global uncertainty, Indonesia is a bright spot. Indonesia stands out as a source of light among nations facing unpredictability and uncertainty, maintaining an average growth rate above 5% over the past seven years. This proves that Indonesia can continue to sail steadily through turbulent times,” said Coordinating Minister for Economic Affairs Airlangga Hartarto during talk show titled “One Year of the Prabowo–Gibran Administration: Optimism on 8% Economic Growth” in Jakarta, Thursday, October 16, 2025.
Stable Economy with Strong Fundamentals
According to Airlangga, Indonesia’s macroeconomic indicators remain resilient. The state budget deficit stays below 3% of GDP, while the debt-to-GDP ratio is among the lowest in the G20. International credit rating agencies continue to assign Indonesia an investment-grade rating with a stable outlook.
On the financial front, the Jakarta Composite Index (JCI) hit an all-time high of 8,200, while foreign exchange reserves reached a record USD 157 billion in March 2025—the highest in history. The government also launched the Bullion Bank, placed Rp200 trillion in domestic banks to strengthen liquidity, and wrote off non-performing loans for productive MSMEs, demonstrating strong support for small businesses.
Investment and Employment Continue to Grow
Investment has emerged as a key driver of economic growth. In the first half of 2025, total investment reached Rp942.9 trillion, a 13.6% increase year-on-year, generating 1.2 million new jobs. The national poverty rate fell to a historic low of 8.47%, equivalent to 23.85 million people, while the unemployment rate dropped to 4.76%, the lowest since 1998.
The number of employed persons reached 145.77 million, an increase of 3.59 million compared to the previous year. The government has also expanded access to affordable financing through the People’s Business Credit (KUR) program, benefiting 3.46 million MSMEs, farmers, and fishermen between January and September 2025.
At the same time, the government continues to push structural reforms through Government Regulation No. 28/2025, simplifying the business licensing process and reducing regulatory bottlenecks. Economic stimulus efforts, such as the 8+4+5 Economic Package and the National Apprenticeship Program, have been introduced to boost consumption and create a strong multiplier effect across sectors.
Indonesia Leading Global Economic Momentum
Airlangga emphasized that Indonesia is playing an increasingly strategic role in the global economy through industrial downstreaming, the development of electric vehicle and semiconductor ecosystems, and participation in BRICS. Indonesia also strengthened global trade cooperation by reducing reciprocal tariffs with the United States from 32% to 19% and expanding market access through the I-EU CEPA and Indonesia–Canada CEPA agreements.
“Indonesia is not merely surviving amid global uncertainty — Indonesia is growing, innovating, and leading with strong economic foundations,” Airlangga asserted.
Driving Digital and Regional Economic Integration
Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, noted that Gross Fixed Capital Formation (GFCF) now contributes 27.83% of GDP, reflecting improving investment quality.
“Going forward, investment must remain the main engine driving our economy toward the 8% growth target,” he said.
Meanwhile, Haryo Limanseto, Spokesperson for the Coordinating Ministry for Economic Affairs, highlighted Indonesia’s progress in digital and regional cooperation. Through the ASEAN Digital Economy Framework Agreement (DEFA) and the expansion of Local Currency Transactions (LCT) with countries such as the UAE, Japan, and ASEAN members, Indonesia is advancing regional financial resilience.
“The number of QRIS users has reached 56 million, demonstrating that Indonesians are increasingly embracing the digital economy,” Haryo stated.
With strong fundamentals, credible fiscal and monetary policies, and sustained structural reforms, Indonesia continues to shine as a bright spot amid the clouds of global uncertainty. (AT Network)
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