This was reported by Coordinating Minister for Economic Affairs Airlangga Hartarto after attending a Plenary Cabinet Meeting at the Presidential Palace on Wednesday.
"The president discussed economic development during the meeting, with a growth of 5.12 percent, as the highest among G20 and ASEAN countries," the minister remarked.
Hartarto noted that this growth is also reflected in rising employment, with 97.73 percent of the workforce absorbed, equivalent to 3.59 million people by February 2025.
He said the president also emphasized the importance of strengthening national competitiveness, including by accelerating the implementation of the business licensing system via the Online Single Submission (OSS) system.
In addition, the government has issued regulations to support ease of doing business, the minister stated.
"To ensure smooth implementation of the OSS system, this information must be disseminated to all relevant authorities," he remarked.
Entering the second semester of 2025, Hartarto said the government aims to boost household consumption and the public's purchasing power.
Several strategic programs have been rolled out, including encouraging investment and exports through industrial areas, as well as accelerating credit distribution.
For the housing sector, the government is launching a revolving People's Business Credit (KUR) Housing scheme, offering up to Rp20 billion (US$1.8 million), specifically for MSME contractors, Hartarto stated.
This KUR can finance the construction of about 40 simple housing units with an initial ceiling of Rp5 billion (US$458 thousand), which can be revolved up to four times.
It is followed by a 100 percent Government-Borne Value Added Tax (PPN DTP) incentive for home purchases worth up to Rp2 billion (US$183 thousand) that will continue until the end of the year, he noted.
Furthermore, the government is preparing support programs ahead of the Christmas and New Year period, including encouraging labor-intensive sectors to accelerate production towards the year-end.
Regarding investment goals, Hartarto stated that first-half realization showed a positive trend toward achieving this year's target of Rp1,900 trillion (US$117.78 billion).
He stated that President Prabowo is scheduled to present fiscal policy guidelines and the 2026 Draft State Budget in his state address on August 15.
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Translator: Andi Firdaus, Resinta Sulistiyandari
Editor: Primayanti
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