Prabowo Revises Indonesia's 2025 Economic Growth Target to 5.3 Percent

September 17, 2025 | 02:19 pm

TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto has revised the 2025 economic growth target to 5.3 percent. This is stipulated in Presidential Regulation (Perpres) Number 79 of 2025 concerning the Update of the 2025 Government Work Plan (RKP). This regulation is an update from Perpres Number 109 of 2024, set in October 2024 under President Joko Widodo.

During Jokowi's era, the 2025 RKP set the economic growth target at 5.3-5.6 percent. Therefore, in this new RKP, Prabowo has set the economic growth target at 5.3 percent, the lower limit.

"The achievement of the 5.3 percent economic growth target in 2025 is supported by the continuously strengthening macroeconomic stability by ensuring that fiscal macro indicators continue to perform well to guarantee the sustainability of development in the medium to long term," as stated in the attachment of Perpres Number 79 of 2025, quoted on Wednesday, September 17, 2025.

In addition to economic growth, Prabowo has also revised the exchange rate of the rupiah. In the previous RKP, the 2025 exchange rate for the rupiah was targeted at a range of Rp15,300-15,900 per US dollar. In the new RKP, however, the rupiah exchange rate is set between Rp16,000 and Rp16,900 per U.S. dollar.

Statistics Indonesia (BPS) reported that economic growth reached 5.12 percent in the second quarter of 2025. Previously, Finance Minister Purbaya Yudhi Sadewa was optimistic that Indonesia's economic growth could reach 8 percent in the coming years.

One of the steps taken to boost economic growth is by placing government funds of Rp200 trillion in the state-owned bank consortium (Himbara).

Purbaya believes this step will stimulate Indonesia's economic growth and create many job opportunities, surpassing the 5 percent stagnation limit. "To achieve a growth level of 6 percent, 6.5 percent, we can use measures and policies like this, later when it's achieved, for reaching 7 percent and 8 percent, we can use other methods," said Purbaya at the GREAT Lecture event themed "National Economic Transformation: Inclusive Growth towards 8 percent" at Bidakara Hotel, Jakarta, Thursday, September 11, 2025.

The following are the national development targets and macroeconomic targets for 2025 based on Perpres 79/2025:

• Economic Growth 5.3 percent
• Poverty Rate 7-8 percent
• Open Unemployment Rate 4.5-5 percent
• Inflation Rate 2.5 plus or minus 1 percent year on year
• Exchange Rate of Rp16,000-16,900 per U.S. dollar
• Foreign Exchange Reserves: US$162.4 billion
• Current Account Balance: 0.78 percent of GDP
• State Revenue: 12.36 percent of GDP
• Tax Revenue: 10.24 percent of GDP
• APBN Surplus/Deficit: 2.53 percent of GDP
• Government Debt Stock: 39.15 percent of GDP
• Investment Growth (PMTB): 5.61 percent

Aqila Izatul Rahman contributed to the writing of this article

Editor's Choice: Himbara's Rp200tn Stimulus Hoped to Benefit Labor-Intensive Industries

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