Indonesia’s economy recorded 5.04% year-on-year (yoy) growth in the third quarter of 2025. This performance placed Indonesia above China, which grew 4.8% in the same period, underscoring the resilience of the national economy amid the global economic slowdown.
Statistics Indonesia (BPS) reported that Indonesia’s gross domestic product (GDP) in the third quarter of 2025 reached Rp6,060 trillion (≈USD 362.53 billion). Meanwhile, GDP at 2010 constant prices stood at Rp3,444.8 trillion (≈USD 206.1 billion).
On a quarter-on-quarter (qoq) basis, the economy expanded by 1.43%, reflecting continued recovery from the previous quarter.
“Economic growth in the third quarter was slightly higher than in the previous period, showing continued recovery momentum,” said Moh. Edy Mahmud, Deputy for National Accounts and Statistical Analysis at BPS.
Macroeconomic Performance and Regional Position
At the regional level, Indonesia outperformed several Asian economies. Singapore grew 2.9% in the third quarter, slowing from 4.5% in the previous quarter, while South Korea recorded growth of 1.7%. Malaysia posted 5.2% growth, and Vietnam led the region with a robust 8.2% expansion.
Cumulatively, Indonesia’s economy grew 5.01% during the first nine months of 2025 (cumulative-to-cumulative/c-to-c). From the production side, the other services sector recorded the highest growth at 10.37%. From the expenditure side, exports of goods and services were the main driver, growing 9.13%.
Exports posted strong 9.91% yoy growth in the third quarter of 2025. Government consumption rebounded, growing 5.49% yoy after contracting in the previous quarter.
Java Island remained the backbone of the national economy, contributing 56.68% of GDP and recording 5.17% growth.
Meanwhile, household consumption experienced a slight moderation to 4.89%, down from 4.97% in the second quarter, but continued to account for more than half of Indonesia’s overall economic growth.
Manufacturing Sector Powers Growth Momentum
The non-oil and gas manufacturing sector once again emerged as the main pillar of economic growth. The Ministry of Industry recorded 5.58% growth in the third quarter of 2025, exceeding the pace of national economic growth.
Agus said the expansion was supported by policies aimed at improving production efficiency, expanding market access, and strengthening industrial competitiveness. Non-oil and gas exports grew 12.56% year-on-year, accounting for more than 85% of total national exports.
“Several key commodities supporting these exports include vegetable oil, steel, machinery and electrical equipment, jewelry and gemstones, as well as vehicles and their parts, each recording growth of between 8 and 82%,” Agus said.
From the investment perspective, the manufacturing sector recorded realized investment of Rp562.7 trillion (≈USD 33.7 billion) from January to September 2025. This figure comprised domestic investment (PMDN) of Rp178.9 trillion (≈USD 10.7 billion) and foreign direct investment (PMA) of Rp383.8 trillion (≈USD 23.0 billion), equivalent to 37.73 % of total national investment.
The manufacturing industry also employed 20.31 million workers, or 13.86% of the national labor force. During the February–August 2025 period, the sector added approximately 210,000 new jobs.
Despite solid growth, manufacturing capacity utilization remained at 59.28%, indicating substantial room for further expansion. The government stated it would continue to strengthen downstreaming policies, investment incentives, and human capital development to maintain manufacturing’s role as the primary engine of Indonesia’s economic growth.
