Jakarta, 5 November 2025 - Indonesia successfully maintained its economic growth momentum in the third quarter of 2025, recording an annual expansion of 5.04% (yoy). The growth was supported by strong domestic demand, resilient investment, solid export performance, and optimal government spending.

Finance Minister Purbaya Yudhi Sadewa stated that the effective management of the state budget (APBN), combined with close coordination with monetary and financial authorities, had helped sustain purchasing power and support business competitiveness.

“Fiscal support has been strengthened through the prudent placement of Rp200 trillion in state funds to ensure sufficient liquidity, alongside non-fiscal measures to accelerate investment realization,” said Purbaya.

Household consumption grew 4.89% (yoy), driven by higher mobility, strong digital transactions, and government stimulus. Spending on transportation and communication rose 6.41%, reflecting increased travel and fuel sales, while restaurant and hotel consumption climbed 6.3% amid a 21.8% surge in domestic tourism.

Government consumption grew 5.49%, supported by a significant rise in Goods Expenditure (19.3%) and Personnel Expenditure (9%), underscoring the government’s commitment to maintaining economic momentum and strengthening purchasing power.

Investment (Gross Fixed Capital Formation) rose 5.04% (yoy), bolstered by strong business confidence and government support for a stable investment climate. Public and SOE capital spending helped leverage private investment, particularly through the operations of Danantara, the national investment accelerator.

Building investment increased 3.02%, while machine investment soared 17%, reflecting business expansion and modernization efforts.

Exports of goods and services surged 9.91% (yoy), becoming a key growth driver. Real goods exports jumped 10.16%, fueled by higher shipments of palm oil, iron and steel, and electrical machinery, while services exports rose 7.62% thanks to booming inbound tourism.

Imports grew modestly by 1.18%, indicating healthy domestic production needs.

The manufacturing sector expanded solidly, with food and beverage up 6.49%, basic metals up 18.62%, and chemicals and pharmaceuticals up 11.65%, reflecting downstreaming success and strong demand. The PMI Manufacturing Index rose from 46.9 in June to 51.2 in October 2025, signaling continued expansion.

The construction sector grew 4.21%, driven by National Strategic Projects, while agriculture, forestry, and fisheries expanded 4.93%, supported by palm oil and coffee production. The mining sector, however, contracted 1.98% due to lower coal export demand.

All regions posted positive growth, led by Sulawesi (5.84%) on the back of mineral downstreaming, followed by Java (5.17%), Sumatra (4.90%), and Kalimantan (4.70%). Bali–Nusa Tenggara grew 4.71% as tourism rebounded, while Maluku–Papua recorded 2.68% growth.

Economic expansion created 1.9 million new jobs, reducing unemployment to 4.85% in August 2025 from 4.91% a year earlier. The largest employment gains came from agriculture (490,000), manufacturing (300,000), and trade (120,000).

In Q4, the government is optimizing growth through Rp34.2 trillion in stimulus programs and Rp15.7 trillion in acceleration initiatives. Fiscal and non-fiscal synergies, supported by the Satgas P2SP task force and Danantara, are expected to sustain investment and exports.

“Going forward, the government will continue to align fiscal policy, financial sector measures, and investment climate improvements to achieve growth that is not only high but also stable and equitable,” Minister Purbaya concluded.