Airlangga: Indonesia's Economy Grows 5.39 Percent, Digitalisation and AI as New Growth Engines
The government assesses that Indonesia’s economic resilience remains intact amid global uncertainties and geopolitical tensions, supported by strong domestic consumption and the development of the digital economy.
Coordinating Minister for the Economy Airlangga Hartarto stated that the national economy grew by 5.39 percent year-on-year in the fourth quarter of 2025. This figure places Indonesia as one of the countries with solid growth performance among G20 members.
“The government views digitalisation and AI as new growth engines for Indonesia’s economy. Indonesia has a highly promising digital economy value, with the digital economy value of Indonesia nearly reaching $100 billion,” Airlangga said in his statement in Jakarta on Wednesday (8/4/2026).
Airlangga explained that household consumption is the largest contributor to Gross Domestic Product (GDP), accounting for 53.63 percent, with growth of 4.99 percent.
This condition reflects the strong purchasing power of the population, supported by Indonesia’s large population base of more than 280 million people.
According to Airlangga, the size of this domestic market also drives the development of the digital economy, including app-based transportation and the utilisation of artificial intelligence (AI) technology. Based on the Global Innovation Index (GII) 2025, Indonesia ranks 55th, up from 85th in 2020.
Additionally, in 2025, Indonesia is recorded to have around 3,200 startups and seven unicorns operating in various sectors, from food and beverages, fintech, e-commerce, to digital transportation.
Nevertheless, Airlangga reminded that technological developments also bring significant changes to the labour market.
Referring to the World Economic Forum report, around 22 percent of job types are projected to undergo transformation in the coming years.
For this reason, the government continues to strengthen digital talent readiness through various strategic programmes.
One of them is through collaboration with Arm Holdings, targeting training for 15,000 talents in the AI field this year.
In addition, Indonesia has also initiated the drafting of the ASEAN Digital Economy Framework Agreement (DEFA) to strengthen digital economic integration in the region.
This agreement is targeted to be signed in 2026 under the Philippines’ leadership.
He added that the utilisation of AI technology enables MSME actors to access data quickly, from sales trends to customer profiles, thereby allowing them to determine business development strategies more accurately.
“The instant utilisation of data, from sales trends to customer summaries, will certainly help MSME actors in determining the types of products that need to be developed or supplied,” he concluded.