JAKARTA - The Indonesian economy at the end of 2025 shows resilience in the face of various pressures, becoming a strong foundation for future economic performance.
Director General of Economic and Fiscal Strategy, Ministry of Finance, Febrio Kacaribu, said that Indonesia's economy at the end of 2025 remained resilient, supported by expansive manufacturing activities, controlled inflation, and a trade balance that continued to record a surplus.
"These factors are an important capital to encourage stronger economic growth in 2026," he said in a statement, Tuesday, January 6.
Meanwhile, Indonesia's manufacturing activity showed positive performance at the end of 2025, namely the December 2025 Manufacturing PMI was recorded at 51.2 or expanding for five consecutive months.
Febrio said this positive performance was supported by strong domestic demand, increased employment, and purchasing activities for raw materials.
He added that business optimism also strengthened and reached the highest level in the last three months, reflecting confidence in the future prospects of the manufacturing sector.
Globally, the manufacturing activities of Indonesia's main partner countries are generally also in the expansion zone, such as the United States (51.8), China (50.1), and India (55.7), as well as in the ASEAN region, the manufacturing PMI of Thailand (57.4) and Malaysia (50.1) also strengthened, providing a positive signal for Indonesian export demand.
In addition, in November 2025, Indonesia's trade balance recorded a surplus of 2.66 billion US dollars, continuing the trend that has been taking place since May 2020.
Cumulatively January - November 2025, the trade balance recorded a surplus of 38.54 billion US dollars, up 9.30 billion US dollars (ctc).
Meanwhile, exports from January to November 2025 were recorded at US$ 256.56 billion, an increase of 5.61 percent (ctc) contributed by the processing industry sector with a contribution of 10.41 percent, reflecting the increasing value of national exports.
Meanwhile, imports in the same period were recorded at US$ 218.02 billion, up 2.03 percent (ctc), driven by the capital goods import with a contribution of 3.28 percent, in line with the expansion of production activities.
Febrio said that in the future, the impetus for the sustainability of the downstream processing of natural resources, the improvement of the competitiveness of national export products, and the diversification of major trading partners will continue to be strengthened to anticipate various global dynamics.
He added that price stability in 2025 remained maintained, reflected by a controlled inflation rate of 2.92 percent (yoy), and the December 2025 inflation rate was influenced by the rise in the prices of several food commodities amid continued strengthening of core inflation and low administered price (AP) inflation.
According to him, weather disturbances and distribution constraints have pushed volatile food inflation to 6.21 percent (yoy), influenced by various chili, rice, and fresh fish commodities.
Meanwhile, AP inflation was recorded to have slightly increased to 1.93 percent (yoy) which was driven by an increase in the price of non-subsidized gasoline and transportation tariffs in the Nataru period.
Meanwhile, core inflation was stable at 2.38 percent (yoy) due to the increase in the price of gold jewelry and throughout 2025, inflation remained within the national target range supported by price and supply intervention policies to maintain affordability of food prices.
Febrio said various domestic economic indicators also showed positive developments at the end of 2025.
He added that until November, the Consumer Confidence Index strengthened to level 124, while the Real Sales Index grew 5.94 percent (yoy) driven by an increase in food and beverage sales and community mobility.
Febrio said the strengthening of economic activity was also reflected in the increase in electricity sales in the business sector by 6.2 percent (yoy), with stable growth in household and industrial electricity sales.
"The government continues to strive to maintain stability and strengthen the momentum of economic growth. Fiscal policy is directed to support national development programs to ensure the sustainability of inclusive and sustainable economic growth," concluded Febrio.
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