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The Economy Is Projected To Grow By 5 Percent, Supported By Stable Investment And Household Consumption

The government is optimistic that Indonesia's economy can grow around 5 percent by the year 2025, despite increasing global pressures due to the escalating trade war between the United States and China. Finance Minister Sri Mulyani Indrawati stated that the economic performance in the first quarter of 2025, along with several other indicators, provides a solid foundation for this growth projection.  

'This year, Indonesia's economic growth is expected to reach 5 percent, primarily driven by sustained household consumption, supported by government spending such as holiday allowances, social assistance, and various incentives,' Sri Mulyani remarked during a press conference of the Financial System Stability Committee (KSSK) in Jakarta on Thursday, April 24, 2025. The minister, affectionately known as Ani, noted that the continuity of National Strategic Projects (PSN) across various regions, along with the rise in private property construction, further strengthens investment performance. 'Business confidence remains high, as evidenced by Indonesia's manufacturing activity staying in the expansion zone,' she explained.  

The former World Bank Managing Director also mentioned that non-construction investments continue to support growth, as indicated by the increase in imports of capital goods, including heavy machinery. Investment Minister and Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani emphasized that investor interest, both domestic and foreign, in Indonesia remains robust. 'Business confidence in Indonesia is still very strong, as reflected in the realization of investments in the first quarter of 2025, which reached IDR 465.2 trillion, a 15.9 percent increase compared to IDR 401.5 trillion in the same period last year,' Rosan stated at the Indonesia AI Day event in Jakarta on Thursday, April 24, 2025. 

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Tag: National Strategic Projects PSN Sri Mulyani Indrawati