Key insights and market outlook
Indonesia's economy has shown resilience during the first year of President Prabowo Subianto and Vice President Gibran Rakabuming Raka's administration, with average GDP growth of 5% in the first half of 2025. According to Febrio Kacaribu, Director General of Economic and Fiscal Strategy at the Ministry of Finance, the economy grew 4.8% in Q1 2025 and 5.12% in Q2 2025. The government is optimistic about maintaining this positive trend despite various challenges.
The first year of President Prabowo Subianto and Vice President Gibran Rakabuming Raka's administration has seen Indonesia's economy maintaining a positive growth trajectory. According to Febrio Kacaribu, Director General of Economic and Fiscal Strategy at the Ministry of Finance, the country's GDP growth averaged 5% in the first half of 2025. The economy grew 4.8% in Q1 2025, followed by 5.12% growth in Q2 2025, demonstrating a strengthening economic performance.
Febrio Kacaribu provided a generally positive assessment of the current administration's economic performance during the Economic Outlook event at Ritz-Carlton Mega Kuningan, Jakarta. He stated that the economic performance has not been 'too bad' and has even outperformed many peer countries in several aspects. This positive narrative is significant as it counters prevailing negative narratives about the government's economic management.
The Ministry of Finance's positive assessment is based on key economic indicators that show resilience in the face of global economic challenges. While specific policy measures were not detailed, the government's confidence in maintaining the current growth trajectory suggests continued focus on economic stabilization and growth initiatives. The administration's economic policies appear to be yielding positive results, at least in the short term.
GDP Growth Report
Government Economic Assessment