Jakarta – Indonesia’s economic momentum continued through 2025, with the Central Statistics Agency (BPS) reporting a full-year growth rate of 5.11%, a slight increase from the 5.03% recorded in 2024. This marks continued positive economic performance for the archipelago nation as it navigates global economic headwinds. The latest data, released Thursday, February 5, 2026, indicates a notably strong fourth quarter, fueled by increased consumer spending and investment.
Jakarta –
Indonesia’s economy grew by 5.11% in 2025, according to data released by the Central Statistics Agency (BPS). This represents an increase compared to the 5.03% growth recorded in 2024.
BPS Head Amalia Adininggar Widyasanti stated that the Indonesian economy reached Rp 23,821.1 trillion based on current price gross domestic product, and Rp 13,580.5 trillion based on constant prices.
“Cumulatively, the Indonesian economy grew 5.11% throughout 2025,” Widyasanti said at a press conference in Jakarta on Thursday, February 5, 2026.
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Looking at year-over-year figures, the Indonesian economy expanded by 5.39% in the fourth quarter of 2025 compared to the same period the previous year. This marks the highest quarterly annual growth rate since the start of the COVID-19 pandemic.
Domestic performance in the fourth quarter of 2025 was driven by strong consumer spending, as indicated by real retail sales indices, which showed growth both year-over-year and cumulatively. This trend is also reflected in BPS data showing a 12.2% quarter-over-quarter increase in online transactions, including retail and marketplace activity.
“This is also reflected in data collected by BPS, including online transactions, both retail and marketplace, which grew 12.2% quarter-to-quarter,” she said.
Other indicators, such as cash social assistance spending, electronic money transaction values, and debit and credit card usage, also experienced relatively strong growth. Domestic production activity remained in an expansionary zone, with paddy production increasing 7.27% year-over-year in the fourth quarter of 2025 and 13.29% throughout the year.
The manufacturing business conditions and prospects index also remained in an expansionary zone. Electricity sales grew approximately 3.5% year-over-year in the fourth quarter of 2025. Furthermore, domestic and foreign investment realized in the fourth quarter of 2025 grew 9.74% year-over-year and 12.66% cumulatively.
Increased public mobility, indicated by rising passenger numbers across all modes of transportation and domestic tourism, along with the year-end holiday season, also contributed to economic activity. Finally, economic policies such as inflation control and benchmark interest rate management supported economic stability and growth in Indonesia.
By business field, all sectors experienced year-over-year growth in the fourth quarter of 2025 except for the mining sector. The main sectors contributing significantly to GDP were processing industry, trade, agriculture, construction, and mining, collectively accounting for 63.09% of GDP.
“Sectors showing high growth include transportation and warehousing, driven by increased public mobility during the year-end holidays and economic stimulus policies such as discounted transportation fares, as well as other economic policies. The second is information and communication, which grew 8.09% due to increased internet user activity and increased data traffic from mobile operators,” she explained.
Looking at the sources of growth, household consumption was the largest contributor in the fourth quarter of 2025, contributing 2.68 basis points.
“In addition, economic growth in the fourth quarter of 2025 was also supported by the Gross Fixed Capital Formation component, with a growth contribution of 1.96%, and government consumption with a growth contribution of 0.43%,” she added.
IMF Forecasts and Indonesia’s Trading Partner Economies
In January 2026, the IMF projected global economic growth of 3.3% in 2025, with developing economies growing around 4.4% – a relative increase compared to 2024. The IMF’s projections also indicated that inflation in developing countries would be relatively higher than global conditions.
Additionally, we can share the growth performance of Indonesia’s main trading partner countries in 2025. China’s growth slowed but remained stable on a cumulative-to-cumulative or year-to-date basis.
The Philippines experienced slower growth both year-over-year and cumulatively, while Singapore and Vietnam saw stronger growth in both metrics. Malaysia and South Korea experienced year-over-year growth in the fourth quarter.
“With this overview, we can see that the economies of Indonesia’s main trading partners continue to grow amid the challenging global economic environment in 2025,” she concluded.
(fdl/fdl)
