ASIATODAY.ID, JAKARTA — The Indonesian government is increasingly confident in achieving its ambitious target of 8% economic growth in the coming years, supported by solid recovery momentum and strengthening macroeconomic fundamentals.
Minister of Finance Purbaya Yudhi Sadewa emphasized that synchronized fiscal, monetary, and real-sector policies have positioned Indonesia on a fast-track growth trajectory.
Speaking at the Launching of Bloomberg Businessweek Indonesia in Jakarta, on November 20, 2025, the Minister noted that President Prabowo Subianto’s 8% growth target is both bold and attainable.
“When President Prabowo announced the target of 8% growth, many were skeptical. I see it differently. Eight percent is a good start,” he said.
Solid Foundation: Indonesia’s Q3-2025 Growth Reaches 5.04%
Indonesia’s optimism is reinforced by its economic performance in the third quarter of 2025, which recorded growth of 5.04%. This performance was driven by strong household consumption, resilient investment, robust exports, and the return of government spending as a key economic accelerator.
“We have successfully reversed the trend of government spending. Previously it restrained growth, but now the government is helping to push the accelerator,” he said.
Key sectoral growth highlights include:
Transportation: +8.62%
Information & communication: +9.65%
Manufacturing: +5.54%
Trade: +5.49%
Agriculture: jumped from 1.62% to 4.93%
Construction: steady at 4.2% due to ongoing National Strategic Projects (PSN)
On the external front, exports surged by 9.91%, while imports grew at a slower pace—resulting in a positive net export contribution to GDP.
Path to 8% Growth: Credit Expansion & Positive Expectations
To accelerate economic activity, the government has injected substantial liquidity into state-owned banks (Himbara), including:
Rp200 trillion in September
Rp76 trillion in the following phase
These funds are aimed at boosting credit disbursement and stimulating business expansion.
However, the Minister stressed that liquidity alone is not enough. The most crucial component is building positive expectations among businesses and the public.
“When expectations are positive, the economy tends to grow. Business leaders are more willing to expand, consumption rises, and overall economic activity strengthens,” he explained.
Policy Synergy as the Core Driver
To keep the growth momentum, the government will continue to optimize: integrated fiscal, monetary, and real-sector policy coordination, improvements in the investment climate, accelerated government spending, financial system stability, and economic transformation programs aligned with national priorities.
“Indonesia has proven resilient despite global uncertainty. Going forward, the fiscal engine, the monetary engine, and the private sector will run in sync,” the Minister concluded.
With strengthening macroeconomic indicators, broad-based sectoral expansion, and a clear policy roadmap, Indonesia is increasingly confident in reaching its 8% growth target — a pivotal milestone in its journey toward becoming an advanced economy. (AT Network)
Follow Us at Google News and WA Channel