Purbaya Reveals Government Spending Is Back Positive, Encourages Economic Growth

Minister of Finance Purbaya Yudhi Sadive said that economic growth in the third quarter of 2025 reached 5.04 percent, supported by domestic demand, solid exports, strong investment, and optimization of government spending.

Purbaya assessed that Indonesia's economic recovery was fast and stable after experiencing a contraction in 2020 and economic growth in the period 2023 to 2025 was consistently in the range of 5 percent.

"After contracting in 2020, our economy will recover quickly and stably, from 2023 to 2025 growth will be maintained at around 5 percent. This shows that Indonesia is quite resilient even though the world is still shrouded in uncertainty," he said at a press conference on our State Budget, Thursday, November 20.

In terms of expenditure components, household consumption as the largest contributor to gross domestic product (GDP) grew 4.89 percent in the third quarter of 2025.

Meanwhile, investment or PMTB increased 5.04 percent, reflecting the optimism of the business world.

"Exports increased by 9.91 percent and imports grew lower, strengthening the impact of net exports on the economy," he said.

Government consumption grew 5.49 percent in line with the acceleration of the realization of state spending during that period.

"The government's consumption grew 5.49 percent with the acceleration of government spending in the third quarter which grew high and we will continue to encourage growth in the fourth quarter," he explained.

Adapun pada kuartal sebelumnya, konsumsi pemerintah tercatat minus 0,33 persen dan minus 1,37 persen pada kuartal I-2025.

Purbaya menegaskan, pemerintah akan terus menggenjot belanja agar memberikan dampak positif terhadap perekonomian.

"Jadi sekarang kita sudah berhasil membalik arah belanja pemerintah sehingga dampak belanja pemerintah APBN ke ekonomi jadi positif. Kalau sebelum-sebelumnya jadi ngerem, sekarang pemerintah juga ikut ngegas perekonomian. kuartal III, triwulan keempat pun akan seperti itu," tuturnya.

As for the previous quarter, government consumption was recorded at minus 0.33 percent and minus 1.37 percent in the first quarter of 2025.

Purbaya emphasized that the government will continue to boost spending in order to have a positive impact on the economy.

"So now we have succeeded in reversing the direction of government spending so that the impact of state spending on the economy becomes positive. Previously, we had braked, now the government is also pushing the economy. In the third quarter, the fourth quarter will be like that," he said.