Minister of Finance Sri Mulyani Indrawati has emphasized the vital role of the state budget (APBN) in supporting Indonesia's economic resilience, while citing that the national economy grew by 5.12 percent year-on-year (yoy) in the second quarter (Q2) of 2025, despite mounting global uncertainties.

“This growth occurred even as global dynamics created considerable uncertainty,” Sri Mulyani told a press conference on the nation’s second-quarter economic performance on Tuesday, August 5, 2025.

She reiterated the government’s commitment to using the state budget as a tool for economic allocation, distribution, and stabilization.

“Whenever perceptions of economic slowdown arise, the government leverages the APBN to preserve optimism and economic momentum,” she said.

She said further that government-issued stimulus packages played a significant role in boosting household consumption, which grew by 4.97 percent in Q2 2025. This growth was largely fueled by increased spending on transportation and dining, particularly during the school holiday season.

"Public spending, especially on transportation and restaurants, rose in line with increased mobility during school holidays. This was in line with government efforts to stimulate activity through various incentives,” she noted.

To drive mobility, the government introduced tax-related incentives such as reduced value-added tax (VAT) on transport fares including train, intercity bus, and airline services during the Idul Fitri and school holiday periods. Toll road discounts were also implemented as part of the broader stimulus package.

“These discounted transport tariffs, supported by APBN via VAT reductions, successfully stimulated economic activity during holidays,” Sri Mulyani said.

The finance minister also highlighted additional fiscal incentives aimed at sustaining consumer purchasing power, including the Wage Subsidy Assistance (BSU) program and the disbursement of the 13th salary for civil servants.

“These programs had a direct multiplier effect on household consumption,” she said, noting that the BSU was directly transferred to formal workers' bank accounts, helping to spur spending.

Meanwhile, the 13th-month salary disbursed in Q2 was valued at over Rp 37 trillion (US$2.3 billion), further strengthening domestic demand.

With these measures, Sri Mulyani reaffirmed the government's strategy to use fiscal policy as a buffer against external shocks while maintaining internal stability and consumer confidence.