Jakarta. Indonesia’s economy remained resilient toward the end of 2025 despite mounting global pressures, providing a solid foundation for stronger growth ahead, the Finance Ministry said on Tuesday.

Director General for Economic and Fiscal Strategy at the Finance Ministry Febrio Kacaribu said the economy held firm through year-end, supported by expanding manufacturing activity, controlled inflation, and a sustained trade surplus.

“These factors form important capital to drive stronger economic growth in 2026,” Febrio said in a statement.

Manufacturing activity stayed firmly in expansion territory, with the December 2025 Manufacturing Purchasing Managers’ Index (PMI) recorded at 51.2, marking five consecutive months of expansion. The performance was underpinned by robust domestic demand, rising employment absorption, and increased raw material purchases. Business confidence also climbed to its highest level in three months, reflecting improved outlooks across the manufacturing sector.

External conditions were also supportive. Manufacturing activity in Indonesia’s major trading partners remained expansionary, including the United States at 51.8, China at 50.1, and India at 55.7. Within ASEAN, Thailand posted a PMI of 57.4, while Malaysia stood at 50.1, signaling favorable prospects for Indonesia’s export demand.

Indonesia’s trade balance recorded a surplus of $2.66 billion in November 2025, extending a surplus streak that has continued since May 2020. Cumulatively, the January–November 2025 trade surplus reached $38.54 billion, up $9.30 billion from the same period a year earlier.

Exports over the 11-month period totaled $256.56 billion, growing 5.61% year on year, driven largely by the manufacturing sector, which contributed 10.41% to export growth—highlighting rising value-added in Indonesia’s exports. Imports reached $218.02 billion, up 2.03%, with capital goods imports contributing 3.28%, in line with increasingly expansive production activity.

Looking ahead, the government will continue to strengthen downstream resource policies, boost export competitiveness, and diversify trading partners to navigate global uncertainties.

On prices, inflation remained well contained throughout 2025. Annual inflation stood at 2.92%, within the national target range. December inflation was influenced by higher food prices, while core inflation stayed stable and administered price inflation remained relatively low. Febrio said price stability was maintained through sustained supply and price intervention policies to keep food affordable.

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