Indonesia’s economic growth momentum was maintained in the third quarter of 2025 at 5.04% (yoy), supported by strong domestic demand and export performance, resilient investment, and optimized government spending. Furthermore, continued expansion in early fourth-quarter economic activity, combined with policy strategies in the final quarter of the year, is expected to keep Indonesia’s 2025 growth in line with target. “The third-quarter realization shows that the State Budget (APBN) has been managed effectively, strengthened by close coordination with monetary authorities and the financial sector. The APBN plays a role in safeguarding household purchasing power and supporting business performance to enhance global competitiveness. Fiscal support is also provided through the prudent placement of Rp200 trillion in state cash reserves to ensure sufficient economic liquidity, along with non-fiscal support for debottlenecking to enable sustainably higher investment realization,” said Minister of Finance, Purbaya Yudhi Sadewa.

Household consumption grew 4.89% (yoy), in line with rising mobility, growth in digital transactions, and continued Government support. Spending on transportation and communication increased 6.41%, reflected in higher public mobility, increased vehicle fuel sales, and rising numbers of rail and sea passengers. Consumption in restaurants and hotels also posted strong growth of 6.3%, in line with the significant 21.8% increase in domestic tourist trips. The strength of household consumption is also reflected in the rise of real retail sales indices, electronic money transactions, and debit/credit card transactions. Meanwhile, Government Consumption grew 5.49%, with Goods Expenditure and Personnel Expenditure rising 19.3% and 9.0%, respectively—demonstrating the Government’s commitment to sustaining economic momentum and supporting purchasing power through accelerated and optimized spending.

Investment (Gross Fixed Capital Formation) grew 5.04% (yoy), supported by strong business confidence in the national economic outlook and the Government’s commitment to creating a stable, pro-investment environment that supports business expansion. Capital expenditures by the Government and SOEs helped stimulate private investment, particularly with the operationalization of Danantara. Building Investment increased 3.02% (yoy) due to accelerated infrastructure development under the National Strategic Projects and priority programs such as kitchens for the Free Nutritious Meals, community schools, and housing initiatives. Machinery Investment grew 17.00%, supported by increased production capacity and modernization of machinery by businesses.

Real exports of goods and services grew significantly at 9.91% (yoy), becoming one of the main growth drivers. Stronger domestic industrial activity, rising demand from major trading partners, and enhanced competitiveness of Indonesian export products served as key contributors. Real goods exports rose 10.16%, driven mainly by higher exports of animal/vegetable fats and oils, iron and steel products, and electrical machinery and equipment. Meanwhile, real services exports grew 7.62%, supported by a 21.8% increase in international tourist arrivals. In the same period, real imports of goods and services grew 1.18%. Real goods imports rose 0.92% (yoy), still supporting domestic production needs, while real services imports grew 2.82% (yoy).

On the production side, the Manufacturing Sector recorded solid growth supported by strong demand. This impressive performance was particularly driven by strategic downstream-oriented subsectors. The Food and Beverage Industry grew 6.49%, driven by increased production of CPO and its derivatives. The Basic Metals Industry grew 18.62%, supported by strong export demand for iron and steel products. The Chemical, Pharmaceutical, and Traditional Medicine Industry grew 11.65%, driven by rising domestic and international demand for chemical materials and products. These outcomes are consistent with the Manufacturing Purchasing Managers’ Index (PMI), which returned to expansion at 50.4 in September (June: contraction at 46.9) and continued to 51.2 in October 2025. The Construction Sector recorded growth of 4.21%, supported by accelerated infrastructure development in National Strategic Projects (PSN), which not only absorb labor but also strengthen the foundation for high long-term economic growth.

The Agriculture, Forestry, and Fisheries Sector grew 4.93% (yoy) in Q3 2025, driven by the Plantation Subsector as the main contributor with growth of 4.56%, supported primarily by increased production of palm oil and coffee. Meanwhile, the Mining Sector experienced a contraction of 1.98%, mainly due to declining coal export demand. The Services Sector expanded in Q3 2025, supported by Government policies to maintain economic stability and strengthen purchasing power. The Trade Sector, the second-largest contributor, grew 5.49% (yoy) due to increased domestic distribution of goods, particularly agricultural and processed industrial products. The Accommodation and Food Services Sector recorded strong growth of 8.41%, supported by rising mobility and a 21.8% increase in domestic tourism, indicating strong household consumption. The Information and Communication Sector grew significantly at 9.65% (yoy), driven by telecommunications revenue, rising data traffic, and increased e-commerce transactions, supporting

Efforts to maintain purchasing power and support business performance were carried out through optimized spending under a Rp34.2 trillion stimulus program and eight acceleration programs totaling Rp15.7 trillion in Q4 2025. High value-added investment and exports were strengthened through Danantara’s catalytic role and debottlenecking supported by the establishment of the Government Strategic Program Acceleration Task Force (Satgas P2SP). With the latest data developments, along with efforts to optimize the role of fiscal policy as an enabler of economic activity and non-fiscal measures to improve the business climate, the Government remains optimistic that overall economic growth in 2025 will reach 5.2%.

Spatially, economic activity across all regions of Indonesia recorded positive growth. The Sulawesi region posted the highest growth at 5.84% (yoy), driven by continued expansion in mineral downstreaming activities. The Sumatra and Kalimantan regions grew strongly at 4.90% and 4.70%, respectively. Java, as the center of national economic activity, recorded strong growth of 5.17%, supported by solid performance in the manufacturing and services sectors. Meanwhile, Bali and Nusa Tenggara grew 4.71%, in line with the recovery of the tourism sector and increased domestic and international tourist visits. The Maluku and Papua regions recorded moderate growth of 2.68%.

Overall, economic growth momentum contributed positively to job creation, with 1.9 million new jobs added. The number of unemployed fell by 4,000 to 7.46 million compared with August 2024, lowering the open unemployment rate (TPT) from 4.91% in August 2024 to 4.85% in August 2025. Meanwhile, the TPT in August 2025 was slightly higher than in February 2025 (4.76%), mainly due to the harvest season in February and a larger influx of new labor-force entrants in August due to school graduations. The sectors with the highest employment absorption were agriculture, manufacturing, and trade, with job additions of 0.49 million, 0.30 million, and 0.12 million workers, respectively.

“Going forward, the Government will continue to accelerate the engines of economic growth. Fiscal policy, the financial sector, and a healthy investment climate will continue to be synchronized to generate growth that is not only strong, but also stable and capable of ensuring sustainable and equitable welfare for the people,” concluded the Finance Minister.