Jakarta - Indonesia's economy recorded a robust growth of 5.12% in the second quarter of 2025, positioning it among the strongest performers in the G20. In addition, the Jakarta Composite Index (JCI) reached an all-time high, breaking through the 8,100 level—signaling strong investor confidence in Indonesia’s economic prospects. Investment in the first half of 2025 also reached IDR 942 trillion, up 13.6% compared to the same period last year.

“Indonesia is the third country to have completed trade negotiations with the United States. Therefore, we are optimistic that risks will become more predictable going forward, and various institutions have started to see signs of global improvement. Growth across many countries is expected to be stronger next year than it has been this year,” said Coordinating Minister for Economic Affairs Airlangga Hartarto during the Investor Daily Summit 2025 in Jakarta on Thursday (October 9).

Over the past year, the government has implemented a range of policies that not only reflect statistical improvement but also deliver tangible benefits to the public. Among the notable outcomes are a drop in the unemployment rate to 4.76%—the lowest since 1998, a 6.5% increase in the provincial minimum wage (UMP) in 2025 to support workers’ purchasing power, and a historic low in the poverty rate, which fell to 8.47% as of March 2025.

To ensure that social assistance is better targeted, the government has developed a Unified National Socio-Economic Data (Data Tunggal Sosial Ekonomi Nasional) system. Additionally, from January to September 2025, low-interest loans under the People’s Business Credit (KUR) scheme were distributed to 3.46 million micro, small, and medium enterprises (MSMEs), as well as farmers and fishers. Structural reforms are also being advanced through deregulation and business facilitation, particularly with the enactment of Government Regulation No. 28/2025, which took effect on October 5, 2025, aimed at streamlining business licensing processes to be faster, simpler, and more predictable.

“Some of the recent milestones include the launch of Indonesia’s first Bullion Bank, and the commencement of operations by Danantara—both are game changers introduced under President Prabowo Subianto’s administration. We're also expanding the use of local currency transactions with several countries, including ASEAN members and Japan, and are now piloting this with the UAE. Moreover, Indonesia has successfully concluded several trade agreements, including the IEU-CEPA, which took 10 years to negotiate and is targeted for implementation by January 1, 2027,” said Minister Airlangga.

Minister Airlangga also highlighted the government’s 8+4+5 economic package and other stimulus measures, which are expected to boost household consumption and create a multiplier effect. One key initiative is the National Internship Program, designed to broaden employment opportunities and prepare Indonesia’s younger generation to compete in the job market.

“Events like this are critical. With expectations for better growth next year, we want to collaborate with all stakeholders—especially the business leaders in this room and our partners at Investor Daily—to foster a renewed sense of optimism. Because one of the key drivers of growth is optimism—both market optimism and investor optimism. We are also continuing efforts to open new export markets, including through potential entry into the CPTPP,” Minister Airlangga concluded.

Also present at the event were Deputy Speaker of the People’s Consultative Assembly (MPR) Eddy Soeparno; Expert Staff for Regional Development at the Coordinating Ministry for Economic Affairs, Haryo Limanseto; Secretary General of the Constitutional Court Heru Setiawan; Executive Chairman of B-Universe Enggartiasto Lukita; COO of B-Universe Rio Abdurrahman; Director Aprevita Wulansari; and senior editorial members of B-Universe.
(dlt/fsr)