Indonesia’s economy recorded a positive growth of 5.04% in the third quarter of 2025 (27/11), supported by multiple economic sectors and rising public optimism. Finance Minister Purbaya Yudi Sadewa conveyed this during a working meeting with Commission XI of the House of Representatives (DPR RI) in Jakarta on Thursday.

The growth reflects proactive government policies and economic stimulus, which have impacted household consumption, manufacturing, and confidence in the economy.

Consumer Confidence Strengthens Retail and Automotive Sales

Public optimism is visible in the consumption sector, with retail sales showing a consistent increase and motor vehicle sales growing significantly. These trends indicate strong consumer confidence in economic stability.

The Consumer Confidence Index (CCI) also rose sharply in October–November 2025, reaching its highest level in recent months, reflecting a clear improvement in public sentiment.

Manufacturing Sector Expands

The manufacturing sector shows positive performance, with Indonesia’s Purchasing Managers’ Index (PMI) reaching 51.2 in October 2025. A PMI above 50 signifies sector expansion, driven by increased production and new orders.

This expansion indicates a broader recovery in the industrial sector and supports inclusive and sustainable economic growth.

Government Fiscal Measures Support Liquidity and Growth

Government fiscal and monetary policies contributed to public optimism. In September 2025, the government injected IDR 200 trillion into the banking system, followed by an additional IDR 76 trillion to boost liquidity.

These steps allowed banks to reduce lending rates, encouraging consumption and investment, and strengthening household purchasing power. Finance Minister Purbaya stated:

"This means that with the support of Commission XI and the approval of the President to place 200 trillion rupiah and manage our finances better, that alone can trigger economic growth and reverse our economic direction, creating a new momentum for economic growth, so that the public is satisfied again with the existing system or policies. The key going forward is that we must maintain this improvement momentum so it does not disappear until we can achieve even higher growth."

PHOTO: MINISTRY OF FINANCE

This article was created with AI assistance.