..household consumption remains the backbone of Indonesia’s economic growth. Therefore, several concrete programs have been prepared to support people’s purchasing power.
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto outlined the government’s strategies to achieve the national economic growth target of 5 to 5.2 percent, starting in the second half of 2025.

Investment remains the main driver of growth. In the first half of 2025, realized investment reached Rp924 trillion, alongside a 32.5 percent year-on-year (yoy) increase in capital goods imports.

“State-owned enterprises (SOEs) capital expenditure and government capital spending, which stood at 17.94 percent in the first half, will support productivity into next year,” Hartarto said during a press conference on Indonesia’s capital market stability here on Monday.

To sustain growth, he added, the government will continue its fiscal stimulus policy in the second half of 2025.

Hartarto noted that the first-half economic stimulus of Rp61 trillion (around US$3.7 billion) had a positive impact. Therefore, a similar stimulus package will be rolled out in the second half.

Regarding state expenditure, the government aims to accelerate budget realization, targeting at least 25 percent of the 2025 State Budget (APBN), equivalent to Rp694 trillion.

The acceleration is particularly aimed at ministries and government agencies with large budgets to generate faster impact on the ground.

The minister emphasized that household consumption remains the backbone of Indonesia’s economic growth. Therefore, several concrete programs have been prepared to support people’s purchasing power.

In addition, the government will expedite the implementation of Labor-Intensive Investment Credit to help revitalize production machinery across various sectors.

In the tourism sector, stimulus will come in the form of national events, bundled holiday tour packages for Christmas 2025 and New Year 2026, and public transportation discounts, including trains, ferries, and toll road tariffs.



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Translator: Bayu, Kenzu
Editor: M Razi Rahman
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