Indonesia Prepares $3 Billion Stimulus to Boost Year-End Economic Growth
Jakarta. The Indonesian government has prepared an economic stimulus package worth more than Rp 50 trillion ($3 billion) to spur activity in the final quarter of 2025, following third-quarter growth of 5.04 percent, Finance Minister Purbaya Yudhi Sadewa confirmed on Thursday.
The plan includes Rp 34.2 trillion in direct fiscal stimulus and an additional Rp 15.7 trillion to fund special programs aimed at accelerating high-value investment and growth.
With these measures, Purbaya expressed optimism that Indonesia could meet its 2025 growth target of 5.2 percent.
“The government will continue to accelerate economic engines through stronger fiscal policies, financial-sector synergy, and a healthy investment climate to achieve high, stable, and equitable growth,” Purbaya said in a statement.
Indonesia’s economy grew 5.04 percent year-on-year in the third quarter, slightly slower than the 5.12 percent recorded in the previous quarter. Despite the modest deceleration, the government said growth momentum remains strong, driven by resilient domestic demand, steady exports, and effective fiscal management.
“The third-quarter realization shows that the state budget is being managed effectively to sustain household purchasing power and enhance business competitiveness, especially at the global level,” Purbaya said.
The minister added that the government has also injected liquidity into the economy by placing Rp 200 trillion in state funds with state-owned banks, alongside non-fiscal measures to ease investment barriers.
“This reflects the government’s commitment to maintaining growth momentum and supporting purchasing power through faster and more efficient spending,” he said.
Read More:
Prabowo: Indonesia on Track for 8% Growth as Free Meal Program Feeds ‘Seven Singapores’ DailyIndonesia’s steady growth has continued to support job creation. As of August 2025, the country’s unemployment figure fell to 7.46 million, down about 4,000 from a year earlier, according to Statistics Indonesia (BPS). Over the past year, the economy created 1.9 million new jobs, primarily in the agriculture, manufacturing, and trade sectors.
Tags: Keywords:Related Articles
‘Only Time Will Tell’: Indonesia on World Bank’s 5.2% Forecast
Indonesia aims to grow 5.4% in 2026 and expand further by 6% the following year, topping the World Bank's 5.2% forecasts.Suahasil Inherits Fiscal Credibility Test as Investor Confidence Wavers
Suahasil Nazara faces pressure to restore fiscal credibility as investors seek consistent policies, clearer signals and market confidence.Indonesia’s Tax Chief Flags Irregularities in Purbaya’s Staff Reshuffle
Indonesia’s tax chief flags irregularities in Purbaya’s staff reshuffle over merit-based appointments.US Investors Not Worried by Indonesia’s Finance Minister Switch
US-ASEAN Business Council says that American investors are more concerned about the policy changes rather than who is helming the ministry.Suahasil’s Return Puts Fiscal Discipline at Center of Prabowo’s Economic Policy
Suahasil Nazara takes over as finance minister, with policy consistency and fiscal discipline emerging as key challenges.Suahasil Told to Avoid Business Cost Hikes, Tax Refund Delays
Businesses have laid out their wishlist for the newly appointed Finance Minister Suahasil Nazara.Purbaya Admits Sudden Exit ‘Partly’ due to Internal Shuffling
Ex-Finance Minister Purbaya Yudhi Sadewa speaks up on his sudden dismissal.Indonesian Stocks Gain as Investors Await Suahasil’s Fiscal Policy
Indonesian stocks opened higher as investors weighed Suahasil Nazara’s appointment as finance minister and awaited his fiscal policy.Suahasil Promises Credible, Trusted Finance Ministry after Purbaya Exit
The new Finance Minister pledged credibility and economic stability as experts urged him to go beyond maintaining the fiscal status quo.No Major Change Expected Under New Finance Minister Suahasil
Economists say major shifts will only happen if new Finance Minister Suahasil Nazara is brave enough to make changes.The Latest
Mystery Money Floods US Midterm Election Campaigns
Elon Musk alone has donated almost $450 million to Republican groups, including the Senate Leadership Fund, the largest super PAC.Indonesia Needs 320 Ethanol Plants to Support 50% Gasoline Blending Target
Indonesia needs 320 ethanol plants for its proposed E50 fuel program, far beyond its current five major production facilities.‘It’s Called Rock and Roll’: Ye Fires Back at Fans Criticizing Jakarta Show
Ye defends his Jakarta performance after fans question his stage presence at a 70,000-person concert that drew visitors from 80 countries.Indian Man Detained at E. Java Airport Over Gold Powder Smuggling
Indonesian airport officers detain an Indian national accused of hiding 1.1 kilograms of gold powder inside his body.Pertamina Loses Primary Oil Import Role as Government Introduces Direct Procurement
Indonesia shifts oil and LPG procurement to government-led deals, reducing Pertamina's traditional import role.Most Popular
