Government Encourages Investment Strategy and Purchasing Power to Strengthen National Economic Foundation
JAKARTA – The government continues to strengthen the foundation of the national economy through a targeted investment strategy and increasing people’s purchasing power. Amidst global challenges that have not subsided, this step is a priority to ensure that economic growth remains stable and sustainable.
Indonesia’s economic growth, recorded at 4.87 percent in the first quarter of 2025, reflects the resilience of the economy that is still maintained. The target of 5.2 percent by the end of the year is considered still within reach thanks to a combination of fiscal policies and sectoral incentives that continue to be strengthened.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that the government will launch various strategic policies to boost consumption and encourage investment.
“Strengthening social protection programs such as PKH, Basic Food Cards, and MBG will be the main catalyst in maintaining people’s purchasing power,” said Airlangga Hartarto.
Social assistance programs are prepared to provide a multiplier effect on growth, especially with increasing household consumption. The government is also reviewing additional incentives for sectors affected by the slowdown, while strengthening leading sectors such as food and beverages and agriculture.
Another step that helps strengthen people’s purchasing power is the provision of discounts on electricity tariffs and airline tickets during the holidays. This strategy has proven effective and will be expanded to other sectors to keep the domestic economic circulation moving.
Airlangga Hartarto added that global dynamics such as tariff wars and geopolitical uncertainty have indeed suppressed exports, but the government remains focused on strengthening the domestic economy.
“The budget efficiency policy is carried out carefully in order to maintain fiscal continuity without sacrificing growth,” added Airlangga Hartarto.
On the investment side, the government is simplifying regulations through a revision of the Presidential Regulation on investment business fields. In addition, the Job Expansion Task Force was formed to ensure optimal job creation.
Deputy for Climate Development and Investment at the Ministry of Investment and Downstream, Riyatno, said that the digital sector is a top priority in the national investment roadmap.
“Investment in data centers and digital ecosystems is projected to reach US$130 billion by 2025. This is a great opportunity for Indonesia to dominate Southeast Asia,” said Riyatno.
He considered cross-sector collaboration as an important element.
“Collaboration between the government, industry players, and academics will accelerate digital transformation and open up broad innovation space,” concluded Riyatno.
With an integrated strategy between social protection, ease of investment, and global risk mitigation, the government strengthens Indonesia’s position to grow inclusively and competitively in the world economic landscape.
