In a written statement issued in Jakarta on Friday, Purbaya noted that domestic economic activity holds a larger share of the country’s gross domestic product (GDP), making it essential to strengthen local consumption—especially amid ongoing external challenges in the global economy.
“Our domestic strength accounts for 80 percent of the economy, while exports contribute only around 20 percent. So the key is how we can fully optimize our domestic economic engines,” he said.
One way to do this, he added, is by encouraging banks to extend financing to business-driven economic sectors. Such efforts will thrive in an environment of optimism.
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“There are several government programs now, like the Free Nutritious Meals (MBG) initiative and the Koperasi Merah Putih (Red and White Cooperatives). These are crucial for maintaining stability—but we must not overlook the private sector,” Purbaya said during the LPS Financial Festival.
Also speaking at the festival, Surabaya Mayor Eri Cahyadi said the city government is working to activate some 2.8 million micro, small, and medium enterprises (MSMEs), which currently generate a combined turnover of around Rp188 billion.
To support these efforts, the municipal government is repurposing idle public assets into commercial spaces for local entrepreneurs—such as cafés, laundromats, and motorcycle wash services—to help build grassroots economic resilience.
“These unused assets are no longer being reserved only for big businesses. They’re now being made available to MSME players,” Eri said.
By optimizing idle assets, he added, the government hopes to encourage more people to start businesses, thereby stimulating the local economy, creating jobs, and increasing household incomes.
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Translator: Silfia, Azis Kurmala
Editor: M Razi Rahman
Copyright © ANTARA 2025
