President Prabowo Subianto struck the right note on Indonesia’s strong economic performance amid global uncertainty during the Cabinet Plenary Meeting at the State Palace in Jakarta on Monday, October 20, 2025.

In his address marking his government's first anniversary, Prabowo highlighted Indonesia's successful maintenance of macroeconomic stability, with steady growth around 5 percent despite volatile geopolitical and geo-economic conditions.

“In a world full of uncertainty, where geopolitical and economic shifts disrupt global supply chains, particularly in energy and food, we are still able to sustain one of the highest growth rates globally,” the president said.

He cited the government’s success in keeping the state budget deficit below 3 percent of GDP and inflation around 2 percent, considerably the lowest among G20 member countries.

“This is not a small achievement. Many developed economies are struggling with high inflation, yet Indonesia has managed to maintain market confidence and stability,” he said.

Prabowo also praised the country’s capital market performance, noting that the Jakarta Composite Index (JCI) hit a record high of 8,000 points, reflecting investor optimism toward Indonesia’s economic fundamentals.

“A nation’s economic strength rests on three fundamentals: food, energy, and water security. As long as we focus on these, and manage them well, our foundation will remain solid,” he remarked.

Prabowo reported that Indonesia’s poverty rate dropped to 8.47 percent, the lowest in the country’s history, while the open unemployment rate fell to 4.76 percent, its lowest level since the 1998 Asian financial crisis.

“We must not be complacent. Even 4.76 percent means millions still need jobs, and we must work hard to ensure opportunities for all,” he warned.

Investment surges, jobs expand

Prabowo detailed further progress in investment and job creation. From January to September 2025, total realized investment reached Rp1,434 trillion, up 13.7 percent from the previous year, and created 1.9 million new jobs.

“This achievement proves that Indonesia remains an attractive destination for investors,” he said.

He cited the government’s flagship Free Nutritious Meal (MBG) program as an example of a policy delivering both social and economic impacts. The program now involves 18,895 micro, small, and medium enterprises (MSMEs), cooperatives, and village-owned enterprises (BUMDes) across Indonesia.

He added that the Rockefeller Institute recently commended the MBG initiative for its strong multiplier effect.

“According to their study, every one dollar invested in MBG generates between five to thirty-seven dollars in economic impact,” Prabowo said.

Meanwhile, in the labor sector, the government recorded a 6.5 percent increase in provincial minimum wages, the highest in recent years. Prabowo also highlighted new initiatives for informal workers, including 4 million ride-hailing drivers, who for the first time received holiday bonuses (THR) through partnerships with major platforms.

“We are working with ride-hailing companies to improve services, reduce unhealthy competition, and ensure sustainable livelihoods for drivers,” Prabowo said.

Tourism sector also showed strong recovery, with foreign tourist arrivals rising by 12 percent to 14.8 million visitors in 2025. Additionally, 33 Indonesian hotels and resorts received Michelin star recognition, marking a milestone for the country’s hospitality industry.

“This recognition places Indonesia among the world’s top destinations,” Prabowo said. “Our tourism growth reflects confidence and quality at the global level.”