Arnoldus Kristianus, Jakarta – Indonesia's economy grows 5.11% in 2025, beating the previous year's performance but falling short of the government's 5.2% target, official data shows.
The Central Statistics Agency (BPS) chief Amalia Adininggar Widyasanti announces the figures at a press conference in Jakarta on Thursday, saying the country's growth remains broadly stable amid mounting external headwinds.
"Cumulatively, Indonesia's economy throughout 2025 grows by 5.11%," Amalia says.
The expansion improves on the 5.03% growth recorded in 2024, reflecting steady household spending, government outlays and investment. GDP per capita in Southeast Asia's largest economy rises to Rp 83.7 million, or about $5,083.4, from Rp 78,6 million in 2024.
Economic momentum strengthens toward the end of the year. The economy grows 5.39% year on year in the fourth quarter of 2025, supported by domestic demand and services activity.
From a sectoral perspective, nearly all industries post positive growth during the year, with the notable exception of mining, which contracts 0.66% amid softer commodity output and prices. Manufacturing remains the main engine of the economy, contributing 19.07% to GDP, followed by trade at 13.17%, agriculture at 13.1%, construction at 9.83% and mining at 8.75%.
Together, those five sectors account for 63.92% of Indonesia's total GDP, BPS data shows. The fastest-growing industries in 2025 are corporate services, which expand 9.01%, and transportation and warehousing, up 8.87%, reflecting stronger mobility, logistics demand, and business activity.
Regionally, economic activity remains heavily concentrated on Java, which contributes 56.93% of the national GDP. Sumatra follows with a 22.22% share, while Kalimantan accounts for 8.12% and Sulawesi 7.22%. Eastern regions contribute a smaller portion, with Bali and Nusa Tenggara at 2.82% and Maluku and Papua at 2.69%, highlighting persistent regional imbalances.
Permata Bank chief economist Josua Pardede previously warned that achieving the 5.2% goal would be challenging amid slowing global growth and rising trade frictions.
"Domestic demand remains solid, but the external sector is weakening due to slowing global demand," Josua says. "There is pressure from trade policies such as US retaliatory tariffs. At the same time, imports tend to rise as domestic activity improves, reducing the contribution of net exports to growth."
Indonesia posts a trade surplus of $41.05 billion in 2025, but its contribution to overall growth remains limited as imports of capital goods and raw materials increase alongside investment and manufacturing activity.
Throughout 2025, growth continues to rely primarily on household consumption, government spending and investment, cushioning the impact of softer exports.
Looking ahead, Josua projects economic growth in 2026 at around 5.1% to 5.2%, broadly in line with recent performance.
"The 2026 outlook could improve if global pressures ease and market confidence strengthens," he says. "However, there are downside risks if global trade tensions intensify and the twin deficits – fiscal and current account – widen."
Source: https://jakartaglobe.id/business/indonesia-gdp-grows-511-in-2025-missing-government-targe