Jakarta (ANTARA) – Indonesia’s economy expanded 5.04 percent in the third quarter of 2025, reflecting effective state budget management and strong coordination with monetary and financial authorities, Finance Minister Purbaya Yudhi Sadewa said Friday.
“The state budget has played a key role in maintaining people’s purchasing power and supporting business performance to boost global competitiveness,” Sadewa said in a statement.
He said fiscal support included the prudent placement of Rp200 trillion (US$12.2 billion) in state funds to secure liquidity, along with non-fiscal measures to ease bottlenecks and encourage investment.
Indonesia’s steady growth momentum created 1.9 million new jobs and reduced unemployment to 7.46 million, lowering the open unemployment rate from 4.91 percent in August 2024 to 4.85 percent a year later.
Household consumption rose 4.89 percent year-on-year, driven by higher mobility, digital transactions, and supportive government policies.
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Government consumption climbed 5.49 percent, with spending on goods up 19.3 percent and personnel expenditure up nine percent, reflecting continued fiscal support for growth.
Investment, measured by gross fixed capital formation, increased 5.04 percent amid strong business confidence and a stable investment climate.
Exports of goods and services surged 9.91 percent, supported by rising industrial activity and firm demand from key trading partners.
To maintain momentum, the government is optimizing spending through a Rp34.2 trillion ($2 billion) stimulus and Rp15.7 trillion ($940 million) in acceleration programs in the fourth quarter of 2025.
Minister Sadewa expressed optimism that Indonesia would achieve its full-year growth target of 5.2 percent in 2025.
“With continued fiscal discipline and policy coordination, we expect the economy to remain resilient and inclusive,” he said.
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