Sri Mulyani Confident in Indonesia’s Economic Growth in Q1 2025

Finance Minister Sri Mulyani Indrawati remains confident that Indonesia’s economy will experience positive growth in the first quarter of 2025. She highlighted three key factors supporting economic resilience during this period.

"We consider household consumption, investment, and exports as the three most crucial components. All three are performing well and remain robust," she stated during a press conference at the Directorate General of Taxes (DJP) in South Jakarta on Tuesday (March 18, 2025).

Sri Mulyani expressed optimism that economic growth would be sustained throughout the year. "We will ensure that this momentum continues until the end of 2025," she added.

Household Consumption Remains Stable Due to Government Policies

She pointed out that household consumption remains strong, thanks to government measures aimed at controlling the prices of essential goods and services.

For instance, the government provided a 50% electricity tariff discount for the first two months of 2025 and lowered airfare prices ahead of Eid al-Fitr 1446 H.

"These policies are designed to maintain people’s purchasing power by keeping prices stable," she explained.

Exports and Investment Remain Strong, PMI Shows Positive Trend

Sri Mulyani also highlighted Indonesia’s Purchasing Managers Index (PMI), which reached 53.6 in February 2025, indicating expansion in the manufacturing sector. "This marks a rebound from previous contraction and demonstrates solid economic activity," she noted.

Additionally, Indonesia’s export performance remains strong, with the trade balance recording a surplus for 58 consecutive months since May 2020.

On the investment front, she expressed optimism that the expansionary PMI trend and stable credit growth would drive new investments, particularly in the manufacturing and food sectors.

"We expect that with the expansion of the manufacturing sector and growth in the food industry, new investments will continue to emerge," she concluded.