The Indonesian economy continues to demonstrate strong resilience and competitive amid global uncertainty. According to data from the Central Statistics Agency (BPS), Indonesia's Gross Domestic Product (GDP) in the third quarter of 2025 grew by 5.04% (yoy), remaining on track to achieve the annual growth target of 5.2%.

"GDP growth of 5.04% (yoy) in the third quarter of 2025 demonstrates the fundamental strength of the national economy, driven by solid household consumption, continued investment growth, and well-coordinated fiscal and monetary policies. The government is committed to maintaining this momentum through support for productive sectors and industrial downstreaming, accelerated state spending, and strengthened social protection," said Coordinating Minister for Economic Affairs Airlangga Hartarto in Jakarta on Wednesday (5/11).

Optimism about the Indonesian economy is also reflected in the IMF report, which has raised its economic growth projections for Indonesia for 2025 and 2026 and named Indonesia as one of the ‘bright spots’ amid the global economic slowdown. Indonesia's economic performance is better than most ASEAN and G20 countries, such as Saudi Arabia at 5.0% yoy; China at 4.8% yoy; Singapore at 2.9% yoy; and South Korea at 1.7%.

From an industry perspective, the highest growth was recorded in the education services sector, in line with the start of the new academic year and increased education spending, as well as corporate services, which were driven by increased rental and labour services activity. Meanwhile, the sectors with the largest contribution to GDP remained dominated by manufacturing (19.15%), trade (14.25%), and agriculture (13.19%).

Regionally, the national economy is also becoming more inclusive. Java grew by 5.17% with a 56.68% contribution to the national GDP, followed by Sulawesi (5.84%), Sumatra (4.90%), Kalimantan (4.70%), and Maluku and Papua (2.64%), which were driven by natural resource processing activities.

On the demand side, household consumption remained the main driver with growth of 4.89% (yoy), supported by government stimulus and increased community mobility. Investment also increased significantly, as reflected in the realisation of foreign and domestic investment up to the third quarter of 2025, which reached Rp1,434.3 trillion (growing 13.7% yoy). The Manufacturing PMI Index in October 2025 was at an expansive level of 51.2, indicating potential acceleration in the following quarter.

Price stability was maintained with inflation in October 2025 at 2.86% (yoy), still within the target range of 2.5±1%. External conditions were also solid with foreign exchange reserves of USD148.7 billion and a foreign debt ratio at a safe level.

The government continues to pursue countercyclical policies to support growth through accelerated state spending in the fourth quarter, strengthening social protection programmes for more than 35 million beneficiary families, and various consumption and transportation stimulus measures ahead of Christmas and New Year.

On the investment and industry front, the Government is strengthening downstreaming through the completion of strategic projects, including the USD4 billion PT Lotte Chemical Indonesia Integrated Petrochemical Plant in Cilegon, which will be inaugurated on 6 November 2025.

With these achievements, the Government is optimistic that Indonesia's economic growth in 2025 will remain on a positive and inclusive track. The Government will continue to maintain the momentum of growth through adaptive, collaborative, and community welfare-oriented policies. (aml/fsr)

***

Spokesperson for the Coordinating Ministry for Economic Affairs
Haryo Limanseto

Website: www.ekon.go.id
Twitter, Instagram, Facebook, TikTok, Threads, & YouTube: @PerekonomianRI
Email: humas@ekon.go.id
LinkedIn: Coordinating Ministry for Economic Affairs of the Republic of Indonesia