"Economic growth in the first quarter reached 4.87 percent (year on year), reflecting that our domestic economy remains strong. However, we need to increase investment. Therefore, Danantara is one of the answers," Deputy Minister of Finance, Anggito Abimanyu, said.
He delivered the remarks at the Fitch Ratings' Annual Indonesia Conference in Jakarta on Wednesday.
Post the formation of its organizational structure, Danantara is compiling a list of strategic projects as a start, he informed.
He said that he has seen the list of projects targeted by Danantara and believes that the institution can be a commercial channel for Indonesia.
"So, they are targeting a number of returns on investment," he added.
In addition to Danantara, the government, under the leadership of President Prabowo Subianto, is committed to increasing domestic economic capacity through the Free Nutritious Meals (MBG) program.
"From the latest data, 3.4 million children have enjoyed this program and (their number) will continue to grow in the future. This program is expected to be able to increase the capacity of our human resources in the future," Abimanyu informed.
"It also has an economic impact, reflected in kitchens in various regions of Indonesia," he added.
As per records, the investment component (gross fixed capital formation) grew by a limited 2.12 percent in the first quarter of 2025.
The investment performance was mainly influenced by building investment, which grew slowly, as reflected in the limited growth of the construction sector. In addition, non-vehicle machinery investment also slowed down.
Meanwhile, household consumption grew by 4.89 percent, supported by the New Year as well as and Ramadan and Eid al-Fitr holidays.
According to Finance Minister Sri Mulyani Indrawati, the State Budget played a role in this positive performance.
The government disbursed several incentives, such as holiday allowance (THR), electricity and toll tariff discounts, and tax incentives, as well as maintained food price stability by providing funds to the State Logistics Agency (Bulog).
In response to the challenging global economy, the government has adopted a deregulation strategy, formed a labor task force, conducted risk mitigation to maintain economic stability, worked to protect the business world, and made efforts to maintain people's purchasing power.
The deregulation is aimed at overcoming barriers to trade and investment, especially from the global side.
The government will also accelerate the realization of absorption by adjusting the reconstruction of more productive state spending. Its main focuses will include expanding the MBG program and raising the housing financing liquidity facility (FLPP) quota.
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Translator: Imamatul Silfia, Yashinta Difa
Editor: Azis Kurmala
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