Prabowo Targets 5.3% Economic Growth in 2025, Investment to Hit IDR 7,593 Trillion!

Bisnis | Ekonomi - Posted on 19 September 2025 Reading time 5 minutes

Presiden Republik Indonesia Prabowo Subianto

President Prabowo Subianto has officially issued Presidential Regulation (Perpres) No. 79 of 2025 concerning the Updating of the Government Work Plan (RKP) for 2025. This document serves as the national development guideline for the first year of implementing both the National Long-Term Development Plan (RPJPN) 2025–2045 and the National Medium-Term Development Plan (RPJMN) 2025–2029.

 

According to the appendix of the regulation, the government has set the 2025 economic growth target at 5.3%, with projected per capita gross domestic product (GDP) of US$5,410 (Atlas Method). With this achievement, Indonesia remains classified as an upper-middle-income country. Inflation is expected to stay within 2.5–4.0%, while the rupiah exchange rate is projected to be in the range of IDR16,000–IDR16,900 per US dollar.

 

To achieve these objectives, the government has set an investment target of IDR7,593.42 trillion, with more than 89% expected to come from the private sector. State-Owned Enterprises (SOEs) are directed to support strategic areas such as healthcare, resource downstreaming, energy, food security, digitalization, and housing. In 2025, 109 SOE investment projects are planned, supporting the achievement of 14 out of 17 Sustainable Development Goals (SDGs).

 

The manufacturing sector is targeted to grow by 5.5%, contributing 20.8% to GDP. Downstream projects in petrochemicals, electric vehicle batteries, and copper are expected to start operating next year. Meanwhile, the tourism sector is projected to contribute 4.2–4.3% of GDP, generating US$17–18 billion in foreign exchange.

 

The government also emphasizes equitable development across regions, with Eastern Indonesia expected to grow faster at 6.2%, compared to 5% in Western Indonesia. Papua is projected to expand by 6% through the development of copper industries, fisheries, and Raja Ampat tourism. Maluku is targeted to grow 9.4%, supported by nickel downstreaming in Weda Bay and Obi.

 

On the fiscal side, the state budget (APBN) deficit is set at 2.53% of GDP, with state revenue targeted at 12.36% of GDP and government spending at 14.89% of GDP. External stability will also be backed by foreign exchange reserves of US$162.4 billion, equivalent to 6.4 months of imports.

 

The 2025 RKP outlines 83 Main Priority Activities, including eight Quick Best Result Programs designed to deliver tangible benefits for the people. The policy directions cover strengthening the Pancasila ideology, industrial downstreaming, green and digital economic transformation, improving human capital quality, and the development of the new capital city, Nusantara.

Source: bisnis.com

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