Amidst concerns about Indonesia’s economic growth, an expert from IPB University has offered crucial advice to navigate the current challenges. Recent data indicates a slight moderation in growth, with Q1 2025 recording 4.87% year-on-year growth, down from previous quarters. This has prompted calls for strategic interventions to revitalize the national economy.
Muhammad Findi, an expert in political economy from IPB University, highlighted the concerning trend of weakening people’s purchasing power, evidenced by a quieter-than-usual Eid homecoming in 2025. This, he suggests, signals a potential decrease in the community’s financial capacity, which could further impact industrial demand and potentially lead to layoffs. Findi also pointed to a potential upward trend in the open unemployment rate if adequate stimulus for entrepreneurs is not provided.
To address these challenges, the IPB expert recommends a multi-pronged approach. Firstly, the government should prioritize job creation, particularly in the creative economy sector, which holds significant appeal for younger generations. Facilitating digital-based businesses and providing comprehensive support for creative economy workers, including access to capital and professional training, are deemed essential.
Secondly, Findi emphasizes the importance of strengthening the social safety net. Ensuring the availability of basic necessities, optimizing health services, and continuing social programs like free nutritious meals and school fee exemptions can help cushion the impact of economic headwinds on vulnerable populations. He also advises the public to prioritize efficient spending and divert funds to productive sectors.
Furthermore, maintaining domestic security and political stability is crucial for restoring confidence and fostering an environment conducive to economic revival. By implementing these strategic measures, Indonesia can aim to bolster purchasing power, create quality employment, and steer its economic growth back on a stronger trajectory.
To effectively address these economic headwinds, Findi suggests the government should also focus on attracting foreign direct investment in strategic sectors and streamlining business regulations to enhance the overall investment climate, thereby creating more high-quality employment opportunities for Indonesians.