Domestic Consumption Remains Primary Pillar of Indonesia's Economic Growth
JAKARTA, investor.id - Minister of Investment and Downstream Industries cum Head of BKPM, Rosan Roeslani, stated that domestic consumption remains the primary pillar driving national economic growth. According to data, household consumption currently accounts for more than half of Indonesia's Gross Domestic Product (GDP).
"Household consumption contributes 54%. So domestic consumption remains the main support for our economic growth," Rosan told reporters on Friday (18/4/2025).
According to Rosan, the government is targeting investment realisation of Rp1,905 trillion in 2025. "Total investment from 2025 to 2029 is approximately Rp13,032 trillion. The hope is that this investment will not only create quality employment but also serve as a driving force for economic growth," he explained.
Acting Head of the Central Statistics Agency (BPS), Amalia Adininggar Widyasanti, confirmed that household consumption was the largest expenditure component throughout 2024. "Increased public mobility is evident from rising communication traffic and growing numbers of rail, sea, and air transport passengers," Amalia said.
She added that consumption also grew in the restaurant and hotel sectors in line with increased tourism activity during school holidays and religious festivals. According to her, this demonstrates the strength of domestic consumption as an indicator of economic resilience.
Amid global conditions still fraught with uncertainty, the focus on domestic consumption is considered the most realistic strategy for maintaining growth momentum. The government continues to strengthen support for MSMEs as the backbone of the people's economy. By reinforcing domestic demand, economic stability is expected to be sustained on an ongoing basis.
Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, noted that domestic consumption contributed approximately 60% of Indonesia's economic growth, which reached 5.03% in 2024. "Domestic consumption must be maintained, especially as 70% comes from the upper-middle and upper classes. They are the ones driving spending," he said.
To maintain purchasing power, the government has launched various programmes early in the year, including airline ticket discounts, Harbolnas 2025, EPIC Sales, BINA Discounts, and food price stabilisation, as efforts to boost public consumption amid global uncertainty.
"Household consumption contributes 54%. So domestic consumption remains the main support for our economic growth," Rosan told reporters on Friday (18/4/2025).
According to Rosan, the government is targeting investment realisation of Rp1,905 trillion in 2025. "Total investment from 2025 to 2029 is approximately Rp13,032 trillion. The hope is that this investment will not only create quality employment but also serve as a driving force for economic growth," he explained.
Acting Head of the Central Statistics Agency (BPS), Amalia Adininggar Widyasanti, confirmed that household consumption was the largest expenditure component throughout 2024. "Increased public mobility is evident from rising communication traffic and growing numbers of rail, sea, and air transport passengers," Amalia said.
She added that consumption also grew in the restaurant and hotel sectors in line with increased tourism activity during school holidays and religious festivals. According to her, this demonstrates the strength of domestic consumption as an indicator of economic resilience.
Amid global conditions still fraught with uncertainty, the focus on domestic consumption is considered the most realistic strategy for maintaining growth momentum. The government continues to strengthen support for MSMEs as the backbone of the people's economy. By reinforcing domestic demand, economic stability is expected to be sustained on an ongoing basis.
Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, noted that domestic consumption contributed approximately 60% of Indonesia's economic growth, which reached 5.03% in 2024. "Domestic consumption must be maintained, especially as 70% comes from the upper-middle and upper classes. They are the ones driving spending," he said.
To maintain purchasing power, the government has launched various programmes early in the year, including airline ticket discounts, Harbolnas 2025, EPIC Sales, BINA Discounts, and food price stabilisation, as efforts to boost public consumption amid global uncertainty.