Indonesia's Economic Growth Reaches 5% as Commission XI Highlights Consumption and Downstreaming

Economic Performance Overview

Indonesia's economy maintained a robust growth rate of 5.04% year-on-year in the third quarter of 2025, according to data from the Central Statistics Agency (BPS). This growth was primarily supported by strong domestic demand and an improvement in export performance, alongside the gradual recovery of government spending.

Challenges in Economic Expansion

Despite the overall positive growth figure, Chairman of Commission XI, Mukhamad Misbakhun, expressed concerns that the expansion was not evenly distributed across various economic components. The quarter-on-quarter analysis revealed a 0.56% contraction in household consumption, signaling a potential slowdown in domestic spending patterns.

Policy Recommendations and Future Outlook

Misbakhun emphasized that while the 5% growth is solid, it is crucial for the government to ensure that fiscal stimulus measures are implemented more effectively and in a timely manner. The focus should be on boosting consumption and enhancing downstreaming initiatives to create a more balanced economic growth trajectory.

Implications for Economic Strategy

The current economic phase, characterized by Misbakhun as 'maintaining momentum rather than full acceleration,' suggests that policymakers need to carefully calibrate their strategies. The challenge lies in sustaining the growth momentum while addressing the uneven distribution of economic benefits across different sectors and components.