#Macroeconomics
State budget drives 5.12 percent economic growth: Sri Mulyani
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.
Indonesia’s Q2 2025 economic growth hits 5.12%, rupiah moves in optimism
Statistics Indonesia (BPS) has revealed that Indonesia’s economy grew 5.12 percent year-on-year in the second quarter (Q2) of 2025, a stronger-than-expected performance that has sparked mixed reactions in the financial markets regarding the future movement of the rupiah.
Economy grows 5.12 percent in Q2 2025, driven by household spending, investment
Statistics Indonesia (BPS) has reported that Indonesia's economy grew by 5.12 percent year-on-year (YoY) in the second quarter of 2025, mainly supported by household consumption and gross fixed capital formation (GFCF).
President Prabowo leads strategic economic briefing amid global uncertainty
President Prabowo Subianto chaired a closed-door meeting with the National Economic Council (DEN) at his private residence in Hambalang, Bogor Regency, on Thursday, July 31, 2025, focusing on evaluating the national economic landscape and setting the government’s strategic policy direction for the future.
Activist challenges government commitment amid ambitious economic plans
Deputy for Energy and Mineral Resources Coordination at Indonesia’s Coordinating Ministry for Economic Affairs, Elen Setiadi, stated that the government’s ambitious Asta Cita framework aligns with its environmental sustainability goals. “Industrial development and economic growth for public welfare and food security are in harmony. It’s about balancing growth with environmental preservation,” Elen said during the Indonesia Net-Zero Summit 2025 in Jakarta on Saturday, July 26, 2025.
ADB President urges SE Asia to seize global uncertainty as catalyst for domestic reform
Asian Development Bank (ADB) President Masato Kanda has called on Southeast Asian nations, including Indonesia, to turn rising global economic uncertainty and trade tensions intensified by U.S. President Donald Trump’s tariff policies into opportunities for deep domestic reform and economic modernization.
President convenes ministers to discuss special economic zones, 2026 budget
President Prabowo Subianto summoned several Cabinet ministers to the Merdeka Palace in Jakarta on Tuesday, July 22, 2025 to discuss the development of Special Economic Zones (SEZs) and the drafting of the 2026 State Budget (APBN).
Secured U.S. tariff reduction to boost export outlook, growth in 2nd semester 2025: BI
The Indonesian Central Bank (BI) has projected that the successful negotiation for reduction in U.S. import tariffs on Indonesia’s export products will significantly support the country’s economic growth in the second half of 2025 through enhanced global competitiveness of Indonesian exports.
Lawmakers urge investment diplomacy as Trump slaps 32 percent tariffs on RI goods
The House of Representatives (DPR) has responded to U.S. President Donald Trump’s decision to impose a 32 percent import tariff on Indonesian products by urging the government to pursue strategic investment diplomacy, particularly by offering to establish manufacturing operations within the United States.
House approves 2026 State Budget deficit projection at 2.48–2.53 percent of GDP
Finance Commission XI of the House of Representatives (DPR) has approved the government’s projected budget deficit for the 2026 draft state budget (RAPBN), setting it between 2.48 percent and 2.53 percent of gross domestic product (GDP), lower than the revised 2025 outlook of 2.78 percent.
House approves 2026 economic growth target of 5.2–5.8 percent
Finance Commission XI of the House of Representatives (DPR) has approved the government's proposed 2026 economic growth target, setting the figure between 5.2 and 5.8 percent, higher than the 5 percent projected for 2025.
Jakarta composite index projected to reach 7,300 by year-end amid recovery signals
The Indonesian Composite Stock Index (IHSG) is projected to reach 7,300 by the end of 2025, with signs of recovery expected to emerge in the second quarter, according to BRI Danareksa Sekuritas.