Indonesia's 2025 Economic Highlights: Infrastructure and Manufacturing Growth

Major Infrastructure Developments

Indonesia marked significant progress in its infrastructure development throughout 2025. The Nusantara Capital City (IKN) project reached major milestones with the completion of its first phase, including key infrastructure such as toll roads connecting Balikpapan to IKN and various government buildings ¹

. The Autograph Tower in Jakarta, standing at 382.9 meters, received international recognition from the Council on Tall Buildings and Urban Habitat (CTBUH) as the tallest building in the Southern Hemisphere.

Energy Sector Advancements

The energy sector witnessed substantial developments, particularly with the inauguration of the Jatigede Hydroelectric Power Plant (PLTA) in Sumedang, West Java, by President Prabowo Subianto on January 20, 2025. This 110 MW power plant is part of 26 new power plants across 18 provinces that were inaugurated simultaneously, adding 3.6 GW to Indonesia's energy capacity ¹

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Manufacturing Sector Performance

The manufacturing sector demonstrated resilience with the Purchasing Manager's Index (PMI) rising to 53.3 in November 2025, indicating expansion after a brief contraction period earlier in the year ³

. The Industrial Confidence Index also remained in expansion territory at 53.45, reflecting positive industry sentiment. Minister of Industry Agus Gumiwang Kartasasmita attributed this performance to the sector's continued contribution to national economic growth.

Economic Resilience Amid Global Challenges

Despite global economic pressures and geopolitical tensions, Indonesia's economy remained robust according to government officials. Coordinating Ministry for Economic Affairs Secretary, Susiwijono Moegiarso, attributed this resilience to coordinated efforts across ministries and agencies in maintaining macroeconomic stability while promoting economic transformation ²

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Challenges and Future Outlook

While celebrating these achievements, the government acknowledged ongoing challenges such as workplace accidents in the construction sector and environmental concerns. To address these issues, the Ministry of Public Works and Housing has been promoting sustainable construction practices through regulations like Ministerial Regulation No. 9/2021 on Sustainable Construction Guidelines.