Indonesia's Economic Growth Shows Resilience Amid Challenges

Q3 2025 Performance Highlights

Indonesia's economy demonstrated resilience in the third quarter of 2025, achieving a 5.04% year-on-year growth despite facing various challenges. Finance Minister Purbaya Yudhi Sadewa attributed this performance to strong domestic demand and robust export activity. The growth was further supported by resilient investment and recovering government spending after two consecutive quarters of negative growth.

Addressing Economic Slowdown

Purbaya emphasized that the economic slowdown observed in the first eight months of 2025 was primarily due to internal mismanagement rather than global economic factors. He assured that corrective measures have been implemented to address these issues. Speaking before the House of Representatives' Commission XI, Purbaya provided insights into the government's efforts to revitalize economic growth and stability.

Economic Outlook

The positive growth trajectory in Q3 2025 indicates a potential recovery path for Indonesia's economy. With continued support from domestic demand and exports, coupled with improved government spending, the outlook remains cautiously optimistic. The government's proactive stance in addressing previous mismanagement is expected to further bolster economic resilience in the coming months.