Amidst various global uncertainties, during the one-year leadership of President Prabowo Subianto, the Indonesian economy has continued to grow sustainably and Indonesia has become one of the bright spots in the world economy.
Minister of Economy Airlangga Hartarto said that amid global economic uncertainty, the national economy remains solid compared to other countries. The latest data, Indonesia's economic growth in the second quarter of this year amounted to 5.12% YoY. Over the past seven years, Indonesia's economy has grown cumulatively by 35%.
"Indonesia is still experiencing an average economic growth of 5% in the last 7 years, and Indonesia has not experienced the dark phase," he said at the 'One Year of Prabowo-Gibran Government' event at JS Luwansa Hotel, Jakarta (16/10/2025).
Inflation was successfully suppressed at 2.65% YoY in September 2025. This figure is still within the range of the 2025 inflation control target set by the government and Bank Indonesia (BI), which is 1.5%-3.5%. This inflation rate makes Indonesia one of the lowest inflation rates in the world.
The state budget deficit remains disciplined below 3%, the government debt ratio is still below 40% of GDP, the lowest ratio among G20 countries.
Investor confidence in the Indonesian government is also quite good. This is reflected in the Jakarta Composite Index (JCI), which has managed to break the highest level in history, which is above the 8,000 level since mid-September.
Not only from portfolio investment, direct investment also recorded a positive performance. In the first semester of 2025, investment realization reached Rp 942 trillion, an increase of Rp 13.6 trillion compared to the same period the previous year, with a workforce of 1.2 million people.
The strong level of investor confidence is also reflected in Indonesia's credit rating which is still at the investment grade level with a stable outlook from all world rating agencies such as Fitch and S&P.
International trade also recorded a positive performance. Indonesia continued its 64th consecutive month of trade surplus. In January-August 2025 Indonesia recorded a trade balance surplus of USD 29.14 billion.
The trade balance surplus also strengthened Indonesia's foreign exchange reserves. In September 2025, Indonesia's foreign exchange reserves were at the level of USD148.70 billion. With the position of foreign exchange reserves, it is sufficient for 6.2 months of imports or 6.0 months of imports and payment of government foreign debt and rupiah exchange rate stabilization policies by Bank Indonesia (BI). This figure is far above the minimum international standard of 3 months.
Prabowo's breakthrough
Airlangga said that President Prabowo has also issued several breakthroughs and policies to boost economic growth, including Indonesia already having a Gold Bank (Bullion Bank). Currently, the world gold price during February-October 2025 reaches USD4,000 per troy ounce. Indonesia has also managed to maintain gold investment in economic turmoil and strengthen the gold-based economy.
The government through the Ministry of Finance also placed IDR 200 trillion in funds to boost liquidity and lower the cost of funds for banks.
In addition, the government is writing off old debts of UMKM that have not been collected for more than 20 years, especially for businesses affected by natural disasters such as earthquakes and floods.
In terms of welfare, the poverty rate fell to 8.47%, or around 23.85 million people, down from 25.22 million last year. The working population increased to 145.77 million people, with an additional 3.59 million new workers, and the open unemployment rate fell to 4.76%, the lowest since the 1998 crisis.
To support low-cost financing, the government expanded the People's Business Credit (KUR) program to the property sector with a ceiling of IDR 130 trillion and a 5% interest subsidy. In total, Airlangga revealed that 3.46 million UMKM players have accessed KUR with a distribution value of Rp 300 trillion outside the housing program.
Investment realization in Special Economic Zones (SEZs) during President Prabowo Subianto's presidency reached Rp 294.4 trillion.
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Airlangga said that the realization of investment in the Special Economic Zone reportedly absorbed up to 187,376 workers. Meanwhile, until now Indonesia has 25 SEZs spread throughout Indonesia.
The Indonesian Chamber of Commerce and Industry (Kadin) appreciates the presence of the Daya Anagata Nusantara Investment Management Agency or Danantara Indonesia and the new Minister of Finance, Purbaya Yudhi Sadewa. Both are believed to make Indonesia's economic growth accelerate to more than the eight percent target.
Deputy Chairman of Kadin for Investment, Downstream and Environment Bobby Gafur Umar said the presence of Danantara and the election of Purbaya as Minister of Finance were the greatest breakthroughs made by President Prabowo Subianto's administration.
"The business world is ready to be a partner of the government and ready to provide input for sustainable economic growth," he said when met at the One Year of Prabowo's Government event, at JS Luwansa Hotel, Jakarta (16/10/2025).
Executive Director of the Institute for Development of Economics and Finance (Indef) Esther Sri Astuti said the government must remain focused on working to boost economic growth.
To increase economic growth, the government focuses on increasing investment in infrastructure and human resources, supporting the UMKM sector through policies and access to financing, encouraging technological innovation and digitalization, and implementing appropriate fiscal and monetary policies to drive the economy and increase purchasing power.
"Encouraging investment in physical infrastructure such as roads, electricity and clean water can increase investment attractiveness and support economic activity," he told SUAR in Jakarta (16/10).
The government must also ensure that the availability of workers with the right types of skills and directed to the right sectors can maximize productive potential.
