Indonesia's Economic Growth Strategy for 2025: Government Programmes

TheIndonesia.co - With no national events on the calendar this year, Indonesia’s government is placing its focus on key priority programmes to help drive domestic economic growth, an adviser to President Prabowo Subianto said Thursday.

According to Antara News Agency, Bambang Brodjonegoro, Special Adviser to the President for Economic Affairs and National Development, noted that Indonesia achieved a 5.03 percent economic growth in the previous year. This growth was largely supported by consumption and spending linked to the legislative and presidential elections in the first half of 2024, along with regional elections later in the year.

However, Brodjonegoro pointed out that there would be no such elections in 2025, meaning new sources of economic momentum would be required. He emphasized that the only growth drivers expected this year would be annual religious events such as Ramadan, Eid al-Fitr, Christmas, and New Year celebrations.

“These are the main factors we can expect for 2025. This means we need to identify fresh sources of growth, particularly from consumer spending,” he said. “And we haven’t even discussed investment or exports yet.”

To maintain a growth rate above 5 percent in 2025, Brodjonegoro highlighted the government’s need to ensure continued consumption. He explained that two major programs were being rolled out to help achieve this goal: the free nutritious meals programme and the 3-million subsidized housing initiative.

These programmes are expected to have far-reaching effects across different economic sectors and regions, creating job opportunities and raising income levels. The housing programme, in particular, will involve not only the construction industry but also the manufacturing and logistics sectors due to the wide range of materials required to build homes, such as cement, steel, and bricks.

“By making sure these programs are inclusive and engage small and medium enterprises—not just large corporations or government bodies—we can extend their benefits across villages throughout Indonesia,” Brodjonegoro concluded.