ASIATODAY.ID, JAKARTA — Indonesia’s economy expanded by 5.04 percent year-on-year (yoy) in the third quarter of 2025, driven by robust domestic demand, strong export performance, resilient investment, and effective government spending.
Finance Minister Purbaya Yudhi Sadewa emphasized that the result underscores effective fiscal management, supported by close coordination between the government, monetary authorities, and the financial sector.
“The state budget (APBN) plays a strategic role in maintaining household purchasing power and enhancing the competitiveness of the business sector, especially in the global market. Fiscal support also includes a prudent placement of IDR 200 trillion in state funds to ensure adequate liquidity in the economy, along with non-fiscal initiatives to remove bottlenecks and accelerate sustainable investment,” said Minister Purbaya in an official statement, quoted November 11, 2025.
Growth Momentum Boosts Employment
The solid growth momentum has created 1.9 million new jobs, reducing unemployment by 4,000 people to 7.46 million. Consequently, the open unemployment rate (TPT) declined from 4.91 percent in August 2024 to 4.85 percent in August 2025.
Strong Domestic Demand
Household consumption rose by 4.89 percent (yoy), supported by higher population mobility, expanding digital transactions, and consistent government policy support.
Meanwhile, government consumption grew 5.49 percent, reflecting increased goods spending (19.3 percent) and personnel spending (9.0 percent) — a testament to the government’s commitment to sustaining growth and protecting household purchasing power through spending acceleration.
Investment and Trade as Key Growth Drivers
Investment, measured by Gross Fixed Capital Formation (GFCF), grew by 5.04 percent (yoy), reflecting strong business confidence and the government’s consistent efforts to maintain a stable and investment-friendly environment.
Exports of goods and services surged 9.91 percent (yoy), becoming a major growth engine. This was supported by rising industrial activity, increased demand from trading partners, and strong competitiveness of Indonesia’s downstream export products.
The manufacturing sector continued to record solid expansion, bolstered by strategic downstream industries contributing to the country’s industrial transformation agenda.
Fiscal Stimulus and Policy Outlook
To sustain purchasing power and business performance, the government implemented a fiscal stimulus of IDR 34.2 trillion and eight acceleration programs worth IDR 15.7 trillion during Q4 2025.
The government also strengthened high-value investment and export performance through Danantara, which mobilizes private sector participation, and the establishment of the Task Force for the Acceleration of Strategic Government Programs to streamline project execution.
With these policies and the continued optimization of fiscal instruments as economic enablers, the government remains optimistic that Indonesia’s economy will achieve 5.2 percent growth for the full year 2025.
“Moving forward, the government will continue to accelerate all engines of growth. Fiscal, financial, and investment policies will be harmonized to deliver growth that is not only stronger but also stable, inclusive, and sustainable for the welfare of all Indonesians,” Minister Purbaya concluded. (AT Network)
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