Indonesia’s Economy Grows 5.04% in Q3 2025, Outpacing China
Jakarta. Indonesia’s economy expanded by 5.04 percent year-on-year in the third quarter of 2025, marking a steady improvement from the previous quarter’s 4.95 percent, according to the Central Statistics Agency (BPS).
In nominal terms, the country’s gross domestic product (GDP) reached Rp 6,060 trillion ($362.53 billion), while GDP at constant 2010 prices stood at Rp 3,444.8 trillion. Quarter-on-quarter, the economy grew 1.43 percent, supported by resilient domestic demand and a rebound in exports.
“Economic growth in the third quarter was slightly higher than in the previous period, showing continued recovery momentum,” said BPS Deputy for National Accounts and Statistical Analysis Moh. Edy Mahmud on Tuesday. The manufacturing industry also remained a key driver, contributing 1.13 percent to overall growth in the third quarter of 2025.
In addition to export performance, which posted an impressive 9.91 percent year-on-year growth, government consumption also recorded solid progress, expanding 5.49 percent year-on-year, a reversal from the second quarter of 2025, when it contracted by 1.38 percent.
Cumulatively, Indonesia’s economy grew 5.01 percent in the first nine months of 2025. From the production side, the other services sector recorded the fastest growth at 10.37 percent, while on the expenditure side, exports of goods and services rose the most, up 9.13 percent.
Spatially, Java Island remained the backbone of the national economy, contributing 56.68 percent to total GDP and posting a 5.17 percent growth rate.
Regionally, Indonesia outperformed several of its Asian peers. China’s economy grew 4.8 percent in Q3, slower than the previous quarter’s 5.2 percent, while Singapore expanded 2.9 percent, down from 4.5 percent in Q2. South Korea posted a modest 1.7 percent growth, up from 0.6 percent in the earlier quarter.
However, Malaysia and Vietnam recorded stronger gains, with Malaysia’s economy growing 5.2 percent and Vietnam leading the region at 8.2 percent year-on-year.
as a preferred
Related Articles
Indonesia’s Trade Surplus Soars, but Import Slump Signals Risks
Indonesia’s trade surplus hit $3.55 billion in August, but falling imports raise concerns over production and investment.
Indonesia’s Inflation Hits 3.28% as Food, Transport Costs Rise
Indonesia’s annual inflation reached 3.28% in September, driven by rising food and transportation costs.
Indonesia Sets Out 2027 Economic Transformation Plan to Drive 8% Growth
Indonesia is accelerating downstreaming, investment and SOE reforms as it seeks new growth engines and targets 8% economic growth.
Indonesia 2027 Budget Explained: Growth, Inflation, Rupiah and Deficit Targets
Prabowo targets 6% growth, 2.5% inflation and a 2.4% deficit as Indonesia unveils key assumptions for its 2027 budget.
Foreign Visitor Spending Rises 7.2% Despite Shorter Indonesia Trips
Foreign tourists spent an average of $1,285 per trip in Q2, up 7.2% from a year earlier despite staying fewer nights in Indonesia.
Indonesia's Growth Is Leaving Workers Behind
Indonesia's economy keeps growing above 5%, but layoffs, shrinking middle-class incomes, and weak hiring reveal a widening jobs gap.
Indonesia Aims for Rp 16,800-17,500 Rupiah in 2027 Budget
Indonesia targets inflation of 1.5%-3.5% and a rupiah range of Rp 16,800-17,500 per US dollar under its agreed 2027 state budget framework.
Manufacturing Recovery Fuels JCI's 1.11% Gain
JCI rose 1.11% on Tuesday as manufacturing activity returned to growth and inflation remained within target.
Indonesia's Foreign Tourist Arrivals Reach Highest Since 2020
Indonesia welcomed 1.25 million foreign tourists in April, lifting Jan-Apr arrivals to the highest level since 2020.
Indonesia's May Inflation Hits 0.28% on Food Price Surge
Indonesia's inflation accelerated to 0.28% in May, driven by higher food prices led by chili peppers, cooking oil, and shallots.The Latest
Ferry Burns for Hours Near Merak After Passengers and Crew Escape
The Batumandi ferry fire is the latest in a series of serious passenger vessel accidents reported in Indonesia over the past five months.
Indonesia Attracts $2.5 Billion Palm Oil Investment So Far in 2026
In Q3 alone, Indonesia saw Rp 14.9 trillion ($829 million) worth of investments coming to its value-added palm oil processing.
Minimum Wage Hikes Fail to Keep Up With Rising Living Costs
Indonesia’s 2026 minimum wage hikes offer limited relief as rising prices erode purchasing power and job insecurity persists.
Prabowo Government Gets Poor Ratings from 66% of Surveyed Professionals
According to the findings, 66% of respondents rated the government's overall performance as poor or very poor.
Rupiah Strengthens to Rp 17,992 as Investment Data Lifts Sentiment
Rupiah gains 0.30% to Rp 17,992 per dollar as strong investment realization and easing US-Russia tensions lift market sentiment.Most Popular
