Indonesia’s economy grows 5.12 pct, among the highest in G20, ASEAN

The Indonesian government has issued a regulation related to streamlined licensing using positive methods, the country’s senior minister said.

 

Jakarta (Indonesia Window) – The Indonesian government is committed to maintaining the momentum of national economic growth through various strategies, including accelerating investment, streamlining business licensing, and increasing household consumption.

The Coordinating Minister for Economic Affairs, Airlangga Hartarto, told journalists after attending a Plenary Cabinet Meeting chaired by Indonesia’s President Prabowo Subianto at the Presidential Palace, Jakarta, Wednesday (Aug. 6)

“The President has given directives regarding economic development, and economic growth of 5.12 percent. We are one of the highest in the G20 and ASEAN,” the senior minister noted.

The increase is also reflected in the employment sector, Airlangga said, adding that 97.73 percent of the population in the workforce has been absorbed, equivalent to 3.59 million people in the past year.

The President also views competitiveness with other countries as vital, and to that end, the Head of State is pushing for accelerated business licensing reform.

“The government has issued a Government Regulation regarding the ease of licensing using positive methods. This needs to be disseminated to all institutions so that the Online Single Submission (OSS) licensing system can run smoothly,” he continued.

Entering the second semester of 2025, the government is likewise emphasizing efforts to maintain public purchasing power and household consumption.

According to Airlangga, a number of flagship programs are being prepared, including encouraging regional investment, exports, and financing for the housing sector.

“For housing, there’s the Finance Financing Program. The recently launched People’s Business Credit for housing is a revolving loan, with a five billion rupiah loan that can be revolved four times. So, up to 20 billion rupiahs can be allocated. This is to boost the construction sector and only involves Micro, Small and Medium Enterprises (MSME) contractors,” he said.

In addition, the 100 percent government-borne value-added tax facility for home purchases up to two billion rupiahs will continue until the end of 2025.

Furthermore, the Indonesian government is also preparing strategic programs to welcome the Christmas and New Year period.

Discussions on the 2026 State Budget will be a special agenda item to be presented by the President on August 15.

However, the President also emphasized that non-budgetary programs that can strengthen the investment climate must remain a priority for ministries and institutions.

“The President’s directive is that all programs related to non-budgetary funds must continue to be promoted by ministries and institutions, because investment is the key to future economic growth,” he said.

Reporting by Indonesia Window