INDONESIA INSIGHTS

Indonesia’s Economic Resilience Confirmed; Cabinet Reports IHSG All-Time High & 5.2% Growth Outlook

Sidang Kabinet Paripurna Dok. BPMI Setpres

​GETNEWS. – Indonesia’s Minister of Economic Affairs, Airlangga Hartarto, delivered a robust report on the national macro economy during the Plenary Cabinet Session led by President Prabowo Subianto on Monday (15/12/2025). The report confirms strong economic resilience, marked by key indicators that underscore the country’s appeal to global investors.

Key Macroeconomic Indicators Solid

​The report highlighted several metrics signaling strong momentum closing out the year:

  • Stock Market Performance: The Jakarta Composite Index (IHSG) hit an all time high, posting a remarkable 20% gain since January, ranking it among Asia’s top performers.
  • External Stability: Both the Trade Balance and the Current Account maintain surplus positions.
  • Liquidity & Credit: Credit growth remains positive at 7.36%, fueled by strong primary money liquidity (up 13.3% or Rp2,136 trillion), promising positive expansion effects for the upcoming year.
  • Foreign Reserves: Foreign exchange reserves remain at a high level.

Growth Forecast and Policy Drivers

​Based on these achievements, the government remains highly confident in meeting its economic targets:

  • 2025 Growth Target: The national economic growth target of 5.2 percent for 2025 is expected to be achieved.
  • Q4 Projection: Growth for the fourth quarter is projected to accelerate above 5.4 percent.

​To sustain this momentum, the government has proposed innovative policies, including supporting consumption through year-end holidays (Nataru) and boosting tourism via 37 national events in December. Significantly, the proposal for “work from anywhere and everywhere” aims to leverage increased public mobility during the year-end break.

Financial Inclusion and Welfare Focus

​The report also detailed major advances in financial sector development and welfare:

  • Financial Inclusion: National Financial Inclusion has reached 92.7%.
  • Financial Literacy: Financial Literacy stands at 66.4%, surpassing the OECD average of 62%.
  • Welfare Shift: A structural change was noted with the renaming of the National Financial Inclusion Council to the National Financial Welfare Council, signaling a policy shift toward greater economic welfare.

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