Jakarta: PonteSud – News Desk
The strong performance of key production sectors is fueling optimism about Indonesia’s economic outlook, according to Finance Minister Sri Mulyani Indrawati.
“The manufacturing industry, which accounts for 19.25% of national GDP, grew at a healthy 4.55% year-on-year in the first quarter of 2025,” she said during the 21st Plenary Session of the House of Representatives (DPR) in Jakarta.
She noted that the trade sector, contributing 13.22% to GDP, expanded by 5.03%, while the agriculture sector, vital for national food security, saw significant growth of 10.52%.
This strong agricultural performance was driven by higher productivity, following regulatory simplification in the distribution of subsidized fertilizers to farmers.
Indrawati explained that deregulation has allowed farmers to access fertilizers in line with their planting schedules.
Rice production rose to 19.09 million tons from January to June 2025 – a 13.2% increase from 16.86 million tons in the same period last year. This marks the highest output in seven years and reinforces Indonesia’s status as one of ASEAN’s most productive rice producers.
She also called for continued efforts to strengthen the domestic economy, urging stakeholders to maintain the positive momentum recorded in the first half of the year.
That momentum is reflected in a June inflation rate of just 1.9% – the lowest among G20 and ASEAN countries, she added.
The rupiah also showed signs of recovery, rebounding from Rp16,943 per US dollar on April 10 to around Rp16,200 by the end of the semester.
