Jakarta. Indonesia’s government is ramping up efforts to hit a higher growth target in the final quarter of 2025, signaling renewed optimism about Indonesia’s economy amid steady consumer spending, a robust trade surplus, and expanding manufacturing activity.

Finance Minister Purbaya Yudhi Sadewa said during a meeting with the Financial System Stability Committee (KSSK)  on Monday that the government remains “committed to maintaining stability while accelerating growth” in line with President Prabowo Subianto’s directive.

“In the fourth quarter, we’re targeting growth above 5.5 percent. The President even joked that if we achieve it, I’ll get a reward,” Purbaya said at Bank Indonesia’s headquarters in Jakarta.

According to Purbaya, household consumption and investment remained strong throughout the third quarter, supported by coordinated fiscal, monetary, and financial sector policies. Retail sales in September grew 5.8 percent year-on-year, reflecting consumer confidence in the government’s performance and improving economic outlook.

Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) also returned to expansionary territory, rising from 50.4 in September to 51.2 in October, driven by three consecutive months of new order growth.

These trends align with the country’s $14 billion trade surplus in the third quarter, a 63.4 percent increase quarter-on-quarter, supported mainly by non-oil and gas exports such as palm oil, mineral fuels, and steel products.

The Central Statistics Agency (BPS) earlier reported that Indonesia posted a $4.34 billion trade surplus in September, marking 65 consecutive months of surplus since May 2020. The non-oil and gas sector contributed $5.99 billion, offsetting a $1.64 billion deficit in oil and gas trade.

To maintain momentum and reach the 5.5 percent growth goal, the Finance Ministry plans to deploy additional fiscal measures, including:

• Placement of Rp 200 trillion in government funds at state-owned banks,
• Over Rp 30 trillion in additional direct cash aid (BLS),
• Rp 13 trillion for food assistance programs, and
• Support for Bulog, the state logistics agency, in distributing government aid.

Purbaya mentioned the mix of fiscal and economic stimulus would continue to drive growth, adding that the difference between the government’s and Bank Indonesia’s projections lay not in the data, but in the level of optimism.

Bank Indonesia previously estimated that Indonesia’s 2025 economic growth would be just above 5.1 percent, slightly below the government’s projection.

The official Central Statistics Agency’s Q3 data release is scheduled for Wednesday.

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