Indonesia Economy Stays Resilient in 2025 as Macro Stability Holds

JAKARTA, Investortrust.id — Indonesia’s economy remains resilient throughout 2025 as the government maintains macroeconomic stability while steering growth toward a more inclusive and sustainable path, according to the Coordinating Ministry for Economic Affairs. The outlook underscores confidence that economic gains continue to reach households despite ongoing global uncertainty.

Government spokesperson Haryo Limanseto said stronger policy coordination across ministries and agencies played a decisive role in preserving national economic performance.

"Throughout 2025, the government has successfully ensured that Indonesia’s economy continues to grow solidly despite various external challenges," Haryo said in a written statement on Thursday, Jan 1, 2026.

Indonesia’s economic growth stayed around 5 percent during the year, with third quarter 2025 growth recorded at 5.04 percent year on year. The result reflected steady domestic demand and sustained investment activity.

The size of the economy continued to expand, with nominal gross domestic product reaching $1.396 trillion in 2024, while purchasing power parity based GDP stood at $4.10 trillion, ranking Indonesia as the world’s eighth largest economy. GDP per capita rose to Rp78.62 million, equal to $4,960.33.

Macroeconomic stability remained intact as inflation stayed within the official target range of 2.5 plus or minus 1 percent, reaching 2.72 percent year on year in November 2025. Financial markets also strengthened, with the Jakarta Composite Index closing at 8,644.26 on Dec 29, 2025, while the rupiah traded relatively stable at around Rp16,785 per US dollar in December.

Other indicators reinforced economic resilience, including foreign exchange reserves of $150.1 billion in November 2025. Manufacturing activity stayed in expansion territory, with the purchasing managers’ index at 53.3 in November, alongside strong consumer confidence and rising real sales.

From the external side, Indonesia recorded a trade surplus for 66 consecutive months since May 2020, with a surplus of $35.88 billion during January to October 2025. Investment realization reached Rp1,434.3 trillion in the first nine months of 2025, growing 13.7 percent annually, while bank lending expanded 7.36 percent year on year in October.

Improving growth quality was reflected in labor market and welfare indicators. Labor force participation rose to 70.59 percent in August 2025, supported by job creation programs and targeted financing schemes.

Open unemployment declined to 4.85 percent, while the national poverty rate fell to 8.47 percent in March 2025 and extreme poverty dropped to 0.85 percent. Income distribution also improved, with the Gini ratio easing to 0.375.

To sustain momentum, the government continued to roll out anticipatory stimulus packages, including food assistance, wage subsidies, transport discounts, and incentives for labor intensive industries and small businesses. Deregulation and licensing integration through the OSS system also remained a policy priority.

Haryo said the government would keep strengthening coordination to safeguard stable and competitive growth.

"The government is committed to maintaining sustainable, inclusive, and competitive economic growth so that development benefits can be felt evenly across society," he said.