Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed President Prabowo Subianto’s directives regarding Indonesia’s economic growth strategy. One of the key priorities is simplifying business licensing procedures to enhance the nation's competitiveness.

According to Airlangga, Indonesia’s economic growth reached 5.12% in the second quarter of 2025, ranking among the highest within the G20 and ASEAN regions. Moreover, job absorption also rose, with employment increasing by 3.59 million people between February 2024 and February 2025, reaching a rate of 97.73%.

"The President considers competitiveness essential as we are in global competition. Therefore, improving business licensing must be accelerated. The government has issued a new Government Regulation (PP) that introduces a positive list approach to business permits," said Airlangga after the Plenary Cabinet Meeting on Wednesday, August 7, 2025.

He expressed hope that the One Single Submission (OSS) system can be adopted across all government institutions and run effectively.

In the second half of the year, the government plans to stimulate household consumption and purchasing power to sustain economic momentum. Key priorities also include flagship national programs, housing sector financing, and the promotion of investment and exports through economic zones.

“For housing, there's the FLPP program, and we’ve just launched a housing KUR (People’s Business Credit) scheme. This KUR offers revolving credit where a Rp5 billion fund can be used up to four times, totaling Rp20 billion. This is intended specifically for MSME contractors,” he explained.

Additionally, the 100% government-borne VAT incentive (PPN DTP) for house purchases up to Rp2 billion will continue until the end of 2025. The government is also preparing strategic programs to anticipate the upcoming Christmas and New Year holidays.

Furthermore, Airlangga noted that the 2026 State Budget (APBN) planning will be a key agenda item, to be delivered by President Prabowo on August 15. However, the President also stressed that non-budgetary programs that strengthen the investment climate must remain a top priority for ministries and government agencies.

“The President instructed that all non-budget initiatives must be continuously supported by ministries and institutions because investment will be the driving force for the country's future economic growth,” he concluded.