Indonesia’s economy grew 5.04% year-on-year (year-on-year) within the third quarter of 2025. These results put Indonesia above China, which grew by 4.8% over the identical period, underscoring the resilience of the domestic economy within the face of the worldwide economic slowdown.
According to Statistics Indonesia (BPS), Indonesia’s gross domestic product (GDP) reached Rp 6,060 trillion (≈ $362.53 billion) within the third quarter of 2025. Meanwhile, GDP at constant 2010 prices amounted to Rp 3,444.8 trillion (≈ USD 206.1 billion).
On a quarter-on-quarter basis, the economy grew by 1.43%, reflecting continued recovery in comparison with the previous quarter.
“Economic growth in the third quarter was slightly higher than in the previous period, indicating continued economic recovery,” Moh said. 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% within the third quarter, slowing from 4.5% within the previous quarter, while South Korea grew 1.7%. Malaysia grew by 5.2% and Vietnam led the region with a solid expansion of 8.2%.
On a cumulative basis, Indonesia’s economy grew by 5.01% in the primary nine months of 2025 (YoY). On the production side, the best growth was recorded within the remaining services sector, which amounted to 10.37%. On the spending side, the essential driver was the export of products and services, which increased by 9.13%.
In the third quarter of 2025, exports recorded a powerful growth of 9.91% y/y. Public consumption rebounded, growing 5.49% y/y after falling within the previous quarter.
The island of Java remained the backbone of the national economy, contributing 56.68% of GDP and growing by 5.17%.
Meanwhile, household consumption declined barely to 4.89%, down from 4.97% within the second quarter, but still accounted for greater than half of Indonesia’s overall economic growth.
The manufacturing sector drives growth dynamics
The non-oil and gas manufacturing sector has once more emerged as a key pillar of economic growth. The Ministry of Industry recorded a growth of 5.58% within the third quarter of 2025, exceeding the country’s economic growth rate.
Agus said the expansion was supported by policies geared toward improving production efficiency, expanding market access and strengthening industry competitiveness. Exports of non-oil and gas raw materials increased by 12.56% year-on-year, accounting for over 85% of total domestic exports.
“Several key commodities supporting these exports include vegetable oil, steel, electrical machinery and equipment, jewelry and gemstones, as well as vehicles and vehicle parts, each of which is growing between 8% and 82%,” Agus said.
From an investment perspective, the manufacturing sector recorded realized investments price Rp 562.7 trillion (≈US$33.7 billion) between January and September 2025. This figure included domestic investments (PMDN) price Rp 178.9 trillion (≈US$10.7 billion) and foreign direct investments (PMA) price Rp 383.8 trillion (≈US$23.0 billion), representing 37.73% of total domestic investment.
The manufacturing industry also employed 20.31 million employees, representing 13.86% of the national workforce. Between February and August 2025, roughly 210,000 recent jobs were created within the sector.
Despite solid growth, capability utilization remained at 59.28%, indicating significant opportunities for further expansion. The government said it is going to proceed to strengthen downstream policies, investment incentives and human capital development to keep up the role of the manufacturing industry because the essential engine of Indonesia’s economic growth.
