ASIATODAY.ID, JAKARTA – The global economy is projected to grow in the range of 2.7% – 3.3% in 2025.
A number of risks of uncertainty are still challenges that cause global economic dynamics ranging from economic and geopolitical policy uncertainty, economic slowdown in a number of countries, high inflation in a number of countries, pressure on global financial markets, climate change, to supply chain disruption.
However, Indonesia’s economic performance continues to show resilience with the economic growth rate in Q4-2024 amounting to 5.02% (yoy), the inflation rate throughout 2024 at 1.57%, the Manufacturing PMI index remaining expansive at 51.9 in January 2025, the Consumer Confidence Index remaining strong at 127.2, and the trade balance recording a surplus for 57 consecutive months since May 2020.
“Our trade balance surplus of US$31 billion was driven by export growth. Then main export commodities such as nickel grew by 17.3%, precious metals by 18.3% and footwear by 10%. “So this shows that demand for textiles and downstream is still high, even though some industries are not in good condition, but globally the demand for textiles and downstream is still very high,” said the Coordinating Minister for the Indonesian Economy, Airlangga Hartarto when delivering a keynote speech at the Indonesia Economic Summit: Mapping Out Indonesia’s Economic Priorities and Strategies, Tuesday, 18 February 2025.
To achieve the 2025 economic growth target, Airlangga said that the Government has prepared a number of economic stimuli in Q1-2025, including Optimization of Social Assistance in February and March 2025, Disbursement of Holiday Allowances for State Civil Servants and Private Employees in March 2025, Ramadhan and Eid Al-Fitr Stimulus Packages including Discounts on Plane Tickets, Economic Stimulus Packages including Discounts on Electricity Tariffs and Exemption from Added Tax Automotive and Property Values, as well as the Free Nutritious Meal Program.
Apart from that, the Government also continues to strive to increase competitiveness and encourage long-term economic transformation. The strategic steps taken by the Government include the Food and Energy Security Program, Optimizing BUMN Management through Danantara, Implementing Housing Financing Liquidity Facilities, Development of Industrial Areas and Special Economic Zones, Labor Intensive Industrial Investment Credit, Optimizing Tax Holiday and Tax Allowance Policies to Maintain the Investment Climate, Expanding Domestic Retention of Natural Resource Export Proceeds, Implementing the Establishment of a Bullion Bank, and Strengthening International Economic Cooperation.
“Then from downstreaming, we hope that not only nickel, other commodities will also thrive. “In our opinion, downstreaming is one of the key factors for success,” explained Airlangga.
Furthermore, Airlangga also mentioned that the development of Special Economic Zones (SEZ) such as the Gresik SEZ and the Kendal SEZ also plays a role in downstream efforts to create added value and strengthen competitiveness. In 2024, SEZ will contribute to attracting investment of up to IDR 82.6 trillion and creating 42,930 jobs.
Regarding environmentally friendly energy commitments, Indonesia continues to strive to accelerate the environmentally friendly energy transition, one of which is by using electric vehicles.
Airlangga said that Indonesia is one of the countries that has a competitive advantage in electric vehicles because it has superior resource potential for producing batteries. As part of efforts to transition environmentally friendly energy, Indonesia has previously launched the Just Energy Transition Partnership (JETP).
Airlangga also conveyed one of the policies recently established by the Government related to Foreign Exchange Proceeds from Exports of Natural Resources, namely the stipulation of Government Regulation Number 8 of 2025 where the Government decided to increase the obligation to place Foreign Exchange Proceeds from Exports of Natural Resources in the Indonesian Financial System to 100%, with a period of 12 months from placement in the Special Account for Foreign Exchange Proceeds from Exports of Natural Resources. This regulation only applies to the mining sector (excluding oil and gas), plantations, forestry and fisheries.
“For the oil and gas sector, it still refers to the provisions of Government Regulation Number 36 of 2023,” he stressed. (AT Network)
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