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Economy

Indonesia Achieves 5.04% GDP Growth in 2025 Amid Stable Inflation and Strong Consumer Confidence

29 Dec, 2025
Indonesia Achieves 5.04% GDP Growth in 2025 Amid Stable Inflation and Strong Consumer Confidence

Indonesia closed 2025 with a resilient economy despite global uncertainties such as geopolitical tensions and financial market volatility (29/12). GDP growth reached 5.04% year-on-year in Q3, inflation remained controlled at 2.72% per November, and the country posted a trade surplus of USD 35.88 billion from January to October, marking 66 consecutive months of positive trade balance. Other indicators, including Manufacturing PMI, Consumer Confidence Index, and credit growth, also stayed positive.

Trade Surplus and Positive Domestic Indicators Strengthen Economy

Domestic consumption and trade performance continued to support economic stability. Positive trends in Manufacturing PMI and Consumer Confidence Index reflect strong production and household sentiment across the nation.

International Engagement and Strategic Trade Agreements Expand

Indonesia strengthened its global presence through participation in OECD accession talks, BRICS, G20, ASEAN, APEC, and RCEP. The government advanced economic cooperation through trade agreements such as IEU-CEPA, ICA-CEPA, ACFTA 3.0, and the Indonesia–EAEU Free Trade Agreement, signed on 21/12/2025. Reciprocal tariff negotiations with the United States have reached substantive agreement, with completion targeted in early 2026.

Energy Transition Funding Boosts Sustainable Growth

Commitments under the Just Energy Transition Partnership (JETP) increased from USD 20 billion in 2022 to USD 21.4 billion in 2025, signaling strong international confidence in Indonesia’s sustainable and inclusive energy policies.

Government Stimulus Supports Household Consumption and Confidence

To maintain purchasing power, the government implemented economic stimulus and social support, including transport discounts, national shopping events such as Harbolnas and Indonesia Great Sale, and direct cash transfers (BLTS Kesra) to nearly 30 million households. These measures helped strengthen household consumption toward the end of the year.

Public Communication and Policy Transparency Remain Strong

Public communication and transparency recorded positive outcomes in 2025. Kemenko Perekonomian was recognized as an Informative Public Agency by the Central Information Commission and consistently improved the quality of national economic policy publications.

“The turn of the year is a strategic moment to reflect on the execution of our duties and functions. I encourage all employees to continue enhancing their capacity and adopt a solution-oriented, collaborative mindset to strengthen national economic performance,” said Sesmenko Susiwijono.

The morning assembly was attended both physically and virtually by Echelon I and II officials of Kemenko Perekonomian, Secretariat General of the National Special Economic Zone Council, and staff members of Kemenko Perekonomian and Dewas KEK.



PHOTO: UNSPLASH

This article was created with AI assistance.

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