Minister of Finance Purbaya Yudhi Sadewa said Indonesia’s economy has entered a period of renewed optimism under the first year of the Prabowo Subianto–Gibran Rakabuming Raka administration, driven by strong fundamentals, stable macroeconomic conditions, and improving public welfare.

“The first-year performance of the Prabowo-Gibran government has created optimism,” Purbaya said during a hearing with the Regional Representatives Council’s (DPD) Committee IV in Jakarta on Monday, November3, 2025.

He added that despite some turbulence in August and September, Indonesia’s economic fundamentals remained solid. “We had some shocks in the third quarter, but because the early part of the year was strong, we managed to recover quickly,” he said.

Stability

According to Purbaya, the economy grew 5.12 percent year-on-year in the second quarter of 2025, while inflation remained subdued at 2.65 percent as of September 2025.

Labor and social indicators also showed improvement. The unemployment rate declined to 4.76 percent in February, while the poverty rate dropped to 8.47 percent. The Gini ratio, a measure of income inequality, improved to 0.375 as of March.

“Rice production has been quite good, and Bulog’s rice reserves remain high, which helps stabilize food prices,” Purbaya noted, referring to the state logistics agency.

To sustain momentum, Purbaya said his ministry had taken several policy breakthroughs aimed at boosting liquidity and stimulating domestic demand.

“When I became finance minister, the first thing I did was to add liquidity to the financial system by transferring Rp200 trillion (US$12.5 billion) of government funds from the central bank to commercial banks,” he said.

The ministry also moved to deregulate and remove investment bottlenecks, in an effort to attract more capital inflows and improve the business climate.

On the fiscal side, the government released Rp168 trillion in previously blocked budget funds and allocated an additional Rp157 trillion through a supplementary spending package to spur growth.

The government is also fast-tracking several flagship social and economic programs, including, Free Nutritious Meals, People’s School initiative, Merah Putih Village Cooperatives, andPublic Housing Financing Facility (FLPP).

“These measures are designed to accelerate growth, boost investment, and ensure that economic expansion benefits the people,” Purbaya said.

With inflation contained, a stable currency, and stronger domestic consumption, Indonesia’s economy appears resilient amid global uncertainty.

“We expect higher growth going forward as liquidity improves and investment sentiment strengthens,” Purbaya concluded.