Jayanty Nada Shofa, Jakarta – Indonesia now expects its economy to expand between 5.4 and 5.6 percent year-on-year (yoy) in the fourth quarter of 2025, as the government seeks to take advantage of the upcoming holiday travel rush, a senior official said on Wednesday.

The government has readied economic stimuli to encourage consumer spending during the upcoming year-end holidays. The packages range from tollway tariff cuts, double-digit airfare discounts to free homecoming trips. Major shopping events await, one even taking place online in response to e-commerce platforms' popularity.

Chief Economic Minister Airlangga Hartarto said he remained upbeat that all these packages could provide an impetus for Indonesia's gross domestic product (GDP).

"The discounts will create around Rp 30 trillion [$1.8 billion] in financial turnover. ... Aside from the discounts, the ministries have spent 90 percent of their budget so far," Airlangga told reporters in Jakarta.

"We are optimistic that the [Q4 growth] will fall within the range of 5.4 and 5.6 percent."

The government has allocated Rp 30 trillion for social assistance to be disbursed between October and December, thereby creating another GDP booster. Affordable housing-related initiatives will inject Rp 5 billion into the economy, according to Airlangga's estimates.

Deputy Tourism Minister Ni Luh Puspa said that Indonesia "would likely attract 1.3 million foreign travelers in December alone". Domestic tourist trips would top 100 million next month.

Indonesia's GDP grew 5.04 percent yoy in Q3-2025, a slower pace compared to the 5.12 percent yoy expansion seen in the previous quarter. President Prabowo Subianto wants to unlock an 8 percent growth during his term.

Source: https://jakartaglobe.id/business/indonesia-expects-q4-gdp-to-expand-545