Boosting Economic Growth, Here Are A Series Of Strategic Steps From The Government Ahead Of Eid

Airlangga Hartarto/RMOL

Boosting Economic Growth, Here Are A Series Of Strategic Steps From The Government Ahead Of Eid

Wednesday, 19 Mar 2025

The government continues to monitor global economic dynamics, one of which is the new economic policy in the United States (US) regarding tariffs.

Coordinating Minister for the Economy Airlangga Hartarto said that amid the risk of recession faced by several countries, Indonesia remains in a good position. Bloomberg data in February 2025 noted that the probability of a recession in Indonesia is less than 5 percent, much lower than other countries such as Mexico (38 percent), Canada (35 percent), and the US (25 percent).

According to Airlangga, with a solid national economic foundation, diversification of trading partners, and continuously strengthened downstreaming, Indonesia has a great opportunity to maintain its stability and competitiveness amidst the turmoil.

At the Nusantara Economic Outlook (NEO) 2025 event last weekend, Airlangga explained that throughout 2024, the national economy showed optimal resilience, with GDP growth of 5.03 percent (yoy).

Several provinces also showed rapid regional growth, such as West Papua and North Maluku which grew by 20.8 percent and 13.73 percent respectively, supported by the growth of the manufacturing and mining & excavation sectors.

Several leading national economic indicators also recorded impressive figures.

The Consumer Confidence Index (CCI) was at 126.4 in February 2025. The Manufacturing PMI was recorded at 53.6. Meanwhile, inflation was quite controlled; namely deflation of 0.48 percent (mtm) due to the ongoing electricity tariff discount program, with core components experiencing inflation of 0.25 percent (mtm).

"In order to encourage economic growth in the first quarter of 2025, the Government is encouraging increased demand and supply to support economic movement during the Eid holiday," explained Airlangga, quoted Monday, March 17, 2025.

He said that the government has prepared 'gifts' to boost economic growth by increasing purchasing power during the 2025 Eid holiday period. The 'gifts' range from discounts on travel tickets to THR.

The 'gifts' to boost economic growth include tourism programs during the Eid al-Fitr period, which is projected to have 122.1 million tourist trips.

Policy on Providing Religious Holiday Allowances (THR) for workers/laborers and Religious Holiday Bonuses for drivers and couriers on application-based transportation services which are paid no later than 7 (seven) days before Eid al-Fitr, distribution of THR for Central and Regional ASN and retirees 2 weeks before Eid al-Fitr.

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