Indonesia's Economy to Grow 5.04 Percent in Q3 2025, Supporting It

JAKARTA - The Central Statistics Agency (BPS) revealed that economic growth in the third quarter of 2025 reached 5.04 percent year-on-year (yoy), compared to 4.95 percent in the same quarter of the previous year.

The Indonesian economy in the second quarter of 2025 reached 5.12 percent (yoy), or quarter-to-quarter (qtq) growth of 1.43 percent.

BPS Deputy for Balance Sheet and Statistical Analysis, Moh Edy Mahmud, explained that in terms of business fields, the majority of sectors experienced positive growth in the third quarter of 2025. Several key sectors that made significant contributions to Gross Domestic Product (GDP) include manufacturing, agriculture, trade, construction, and mining.

"The main business fields that made significant contributions to GDP are manufacturing, agriculture, trade, construction, and mining. The total share of these four business fields reached approximately 65.02 percent of GDP," Edy said in a BPS release on Wednesday, November 5.

Edy revealed that the education services sector recorded the highest growth, at 10.59 percent, in line with the start of the new academic year and increased spending on education.

"The corporate services sector and other services also grew strongly in the third quarter of 2025 compared to the same period the previous year, at 9.94 percent and 9.92 percent, respectively," he explained.

In terms of sources of economic growth, the manufacturing sector was the largest contributor, contributing 1.13 percent, followed by trade at 0.72 percent, information and communication at 0.63 percent, and agriculture at 0.61 percent.

"A more detailed look at the development of the business sectors with the highest growth shows that the manufacturing industry grew, driven by domestic and foreign demand. The food and beverage industry grew 6.49 percent, primarily driven by increased production of CPO and its derivatives," he said.

Edy explained that the growth of the processing industry was supported by increasing domestic demand and exports, particularly in the food and beverage industry, which grew 6.49 percent thanks to increased production of CPO and its derivatives.

Edy added that the base metals industry grew 18.62 percent in line with increasing foreign demand for base metal products, particularly iron and steel.

Meanwhile, the chemical, pharmaceutical, and traditional medicine industry grew 11.65 percent, driven by increased production of chemical materials and goods to meet domestic and international demand.

On the expenditure side, all components recorded positive growth. Edy stated that household consumption remains the main supporter of GDP, contributing 53.14 percent and growing 4.89 percent in the third quarter of 2025, indicating that public purchasing power remains strong.

Furthermore, Gross Fixed Capital Formation (GFCF) also played a significant role, contributing 29.09 percent to GDP in the third quarter of 2025.

"Therefore, 82.23 percent of GDP in the third quarter came from household consumption and GFCF," he said.