Strong GDP and Investment Show Indonesia’s Economic Transformation Is on Track
Main Takeaways
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JAKARTA, Investortrust.id — President Prabowo Subianto has expressed confidence that Indonesia’s economic transformation strategy is yielding results, following the announcement of 5.12% year-on-year gross domestic product (GDP) growth in the second quarter of 2025.
“The President said that with growth like this, it means our national transformation strategy is heading in the right direction,” said Hasan Nasbi, Head of the Presidential Communications Office, during a press briefing in Jakarta on Thursday, Aug. 7.
Supporting this optimism is a surge in realized investment. The Ministry of Investment and Downstreaming (BKPM) reported that total investment in the first half of 2025 reached Rp 942.9 trillion ($60.7 billion), or 49.5% of the full-year target of Rp 1,905.6 trillion ($122.8 billion). The figure represents a 13.6% increase from the same period last year.
Domestic direct investment (PMDN) contributed Rp 510.3 trillion, or 54.1% of the total, while foreign direct investment (PMA) accounted for Rp 432.6 trillion, or 45.9%. The basic metal and metal goods subsector led all industries with Rp 134.4 trillion in investment, followed by transport, warehousing, and telecom at Rp 110.7 trillion, and mining at Rp 102.2 trillion.
The investments during the January–June period have created employment for approximately 1.25 million people, strengthening the administration’s claim of inclusive economic growth.
Changing Consumer Behavior, Not Weak Purchasing Power
While concerns have been raised over the so-called rombonan jarang beli (rojali, or "crowds that browse but rarely buy") and rombonan hanya nanya-nanya (rohana, or "crowds that only ask questions"), Deputy Trade Minister Dyah Roro Esti Widya Putri said these trends are not evidence of weakening purchasing power.
“Shopping behavior has changed, and that’s normal. Malls are now gathering places, not just retail centers,” Roro said on Wednesday, Aug. 6, at the Trade Ministry’s office in Jakarta.
She explained that even though direct purchases at physical stores may appear to decline, many consumers still complete transactions after recreational activities or via e-commerce platforms. “There are people who shop before or after going to the cinema or eating out. And some have moved to e-commerce,” she said.
Roro emphasized that this shift toward digital shopping reflects the broader transformation of consumer habits in the digital economy, not a sign of lower consumption levels. The growing availability and convenience of online shopping platforms have simply changed how people buy, not how much they spend.
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