Indonesia Q3 Growth at 5.04% Signals Resilience, Economists Call for Boost in Household Spending

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REPUBLIKA.CO.ID, JAKARTA -- Indonesia’s economy remained resilient and continued to record solid growth despite global uncertainty, according to Statistics Indonesia (BPS). The country’s Gross Domestic Product (GDP) expanded by 5.04 percent year-on-year in the third quarter of 2025.

“This is higher than the same period last year, which recorded growth of 4.95 percent,” said BPS Deputy for National Accounts and Statistical Analysis Moh Edy Mahmud during a press conference at the BPS office in Jakarta on Wednesday (5/11/2025).

Edy noted that Indonesia’s growth outpaced that of China, which grew 4.8 percent, and Singapore at 2.9 percent. However, it remained below Vietnam’s growth of 8.2 percent and Malaysia’s 5.2 percent.

He said stable household consumption continued to be a key contributor to Indonesia’s growth.

“This was supported by the government’s inflation control measures, along with rising indicators such as online transactions through e-commerce platforms and electronic money, debit card, and credit card transactions,” he added.

Domestic tourism also strengthened, with the number of domestic tourist trips jumping 21.84 percent year-on-year in the third quarter of 2025. Passenger traffic increased across several transportation modes, including rail and sea.

On the expenditure side, exports of goods and services grew 9.91 percent, driven by strong non-oil and gas exports such as animal and vegetable fats and oils, iron and steel, electrical machinery and equipment, and vehicles and components.

“In addition, the increase in foreign tourist arrivals contributed to the growth of service exports,” Edy said.

Investment, reflected in the Gross Fixed Capital Formation (GFCF) component, also grew positively by 5.04 percent. Government consumption rose 5.49 percent.

From the production side, the manufacturing sector expanded 5.54 percent. Edy said growth in food and beverage manufacturing, basic metals, and the chemical, pharmaceutical, and traditional medicine industries supported the strong performance of the sector.

“This growth was mainly driven by rising demand, both domestically and internationally,” he noted.

The wholesale and retail trade sector, along with motor vehicle and motorcycle repair, grew 5.49 percent in line with increased domestic production and trading activities—particularly in agricultural and manufacturing goods.

Meanwhile, the information and communication sector posted robust growth of 9.65 percent, supported by increased data traffic and digital commerce transactions. The agriculture sector grew 4.93 percent, driven by higher domestic demand.

“Spatially, economic growth remained positive across all regions. Java recorded growth of 5.17 percent, and Sulawesi expanded by 5.84 percent—both above the national average,” Edy said.

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