President Prabowo Subianto called Airlangga Hartarto, the Coordinating Minister for Economic Affairs, to Istana Merdeka, Jakarta, to discuss Indonesia’s current economic condition and plans for special economic zones (KEKs) (18/3/2025). During the meeting, Airlangga presented updates on economic developments, including collaboration on the Two Countries Twin Parks project between Indonesia and Fujian, China.

Airlangga highlighted the focus on Batang’s special economic zone with a projected investment of 16 trillion IDR. This initiative is a continuation of the discussions during Prabowo’s meeting with Chinese President Xi Jinping, reflecting a growing international economic collaboration.

Moreover, Airlangga reported progress in other economic zones, such as Nongsa and Singhasari. Nongsa is planning to expand its zone and integrate data centers, while in Singhasari, educational institutions like King College’s and Queen Mary from the Russell Group are playing a role in the zone’s development.

Despite global challenges, Airlangga reassured the public that Indonesia’s economic fundamentals remain strong. Economic growth, low inflation, and consumer confidence are indicators of Indonesia’s resilience. In February 2025, Indonesia recorded a trade surplus of USD 6.61 billion, and its exports reached USD 14 billion.

Airlangga further pointed out that Indonesia’s GDP growth remains competitive compared to countries like Malaysia and Chile, and inflation remains one of the lowest in the ASEAN region. Credit growth and a strong foreign exchange reserve were also cited as positive indicators.

In addition to domestic economic matters, Airlangga discussed the importance of optimizing Kredit Usaha Rakyat (KUR), a loan program aimed at enhancing productive sectors. A revision of the Presidential Decree regarding KUR is expected to bring additional support for small and medium enterprises.

On the international front, Airlangga outlined progress in trade agreements, particularly with the Eurasian Economic Union (EAEU), and the ongoing CPTPP negotiations. The inclusion of countries such as Mexico, Canada, Peru, and the United Kingdom in the trade deal represents an opportunity for expanding Indonesia’s market reach.

With solid economic foundations and international partnerships in the pipeline, the government remains confident that Indonesia's economy will continue to grow sustainably despite global economic challenges.

PHOTO: KANTOR STAF PRESIDEN

This article was created with AI assistance.