Government Ramps Up Measures to Accelerate Economic Growth

Government Ramps Up Measures to Accelerate Economic Growth

The Indonesian government speeds up APBN spending and social aid programs to counter economic slowdown and support 2025 GDP growth.

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Rabu, 7 Mei 2025 | 18:00

Bisnis.com, JAKARTA — The government plans to accelerate the realization of state budget (APBN) spending in an effort to boost economic growth, which slowed in Q1/2025. One of the key contributors to the slowdown was a contraction in government expenditure.

The deceleration in economic performance during the previous quarter has prompted several institutions to revise their 2025 growth projections downward (see infographic). Many now expect Indonesia’s gross domestic product (GDP) growth to fall short of the 5% mark, with some forecasts dipping even lower.

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