Rejecting the Provocation of Dark Indonesia, the Economy Continues to Grow
By: Anwar Gani
In the midst of various challenging global dynamics, the Indonesian economy has shown resilience and a positive growth direction. Issues that say that “Dark Indonesia” is due to being in a difficult economic condition are not in line with existing data and reality. In fact, the national economy continues to record stable growth and reflects strong fundamentals. With cooperation between the government and all economic actors, Indonesia is able to maintain growth momentum and continue to move in a better direction. It is important for all components of the nation to reject the provocation of “dark Indonesia” and prioritize data-based optimism that the Indonesian economy continues to grow despite being in the midst of global challenges.
In the first quarter of 2025, the Indonesian economy grew by 4.87% annually. This figure is not only proof that the national economy is still running well, but also shows resilience amid external pressures such as geopolitical uncertainty and increasing global protectionist policies. In fact, compared to several ASEAN countries and G20 members, Indonesia’s growth is still higher, reflecting the resilience and great potential of the national economy.
This growth is driven by the strengthening of several strategic sectors. Household consumption remains the main driver with the largest contribution to GDP. In the first quarter of 2025, household consumption grew 4.89%, in line with the increasing economic activity of the community during Ramadan and Eid al-Fitr. In addition, the export sector also recorded positive performance, growing by 6.78%, supported by a surge in non-oil and gas exports and an increase in the number of foreign tourist visits.
In terms of business fields, almost all sectors experienced positive growth. The agricultural sector recorded a significant spike of 10.52% along with the normal harvest and increasing productivity. The manufacturing industry sector as the main contributor to national GDP grew 4.55%, with a contribution to the economy of 19.25%. Trade also grew 5.03% and became one of the main pillars of the economy along with the agricultural and industrial sectors.
Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, emphasized that almost all business sectors recorded healthy growth. The manufacturing industry, trade, agriculture, and construction, the four sectors with the largest contribution to GDP, are running stably and productively. This shows that Indonesia’s economic structure is not only strong, but also continues to grow with an increasingly even base across various sectors.
Economic growth also has a direct impact on employment. February 2025 data recorded an additional 3.59 million workers absorbed, with the trade sector contributing almost one million and the manufacturing industry around 720 thousand. This indicates that Indonesia’s economic growth is not just a number, but also presents concrete benefits for people’s welfare, especially in the form of job creation.
From the external side, although there was a decrease in foreign exchange reserves from USD157.1 billion to USD152.5 billion, this condition remains within safe limits. The amount of Indonesia’s foreign exchange reserves is still equivalent to 6.4 months of import financing, far above the international threshold of only three months. This is an important indicator that the resilience of Indonesia’s external sector remains well maintained.
Responding to the current economic situation, Finance Minister Sri Mulyani stated that the government will accelerate the realization of productive state spending. The budget focus is directed at creating direct economic impacts, such as the free nutritious meal program (MBG) whose scope continues to be expanded. The government is also strengthening the housing sector through fiscal incentives and increased financing, including through the FLPP program which now targets more beneficiaries.
This acceleration of state spending is part of a mitigation measure against global uncertainty, as well as a strategy to maintain people’s purchasing power and support the business world. The government is also making various structural adjustments through deregulation, the formation of a labor task force, and strengthening fiscal policy so that the APBN can work optimally in supporting inclusive and sustainable economic growth.
Furthermore, economic diplomacy efforts continue to be strengthened, both in the form of bilateral cooperation and active participation in multilateral forums. The goal is to maintain global market access and increase the competitiveness of national products amidst the challenging international trade landscape.
