Indonesia’s economy demonstrated resilience with a growth rate of 5.04% in the third quarter of 2025, as reported by the country’s statistics agency on November 5. Taken altogether, this expansion indicates a much more complicated economic landscape than one year ago. So far, strong exports and a boost in government spending have made up for the effects of falling household consumption.
President Prabowo Subianto’s administration now faces a critical challenge: ensuring the creation of quality jobs to sustain this growth trajectory. The federal government has done historically important and commendable work to stabilize the economy. This new focus will be key in addressing the constant elephant in the room concerning consumer spending.
The numbers show that, although the economy is still growing, the growth of household consumption has further slowed. This trend poses questions about the long-term sustainability of economic growth, especially as consumer spending typically drives much of Indonesia’s economic activity. Despite these challenges, the finance minister has expressed optimism that the economy may rebound in the final quarter of the year due to an expected increase in manufacturing orders.
In Jakarta, the bustling capital of Indonesia, shoppers can be seen browsing through vibrant batik outfits, symbolizing the rich cultural heritage and creative industry that contributes to local economic activity. A photo taken by Yuki Kohara beautifully describes this scene, representing both the challenges and opportunities that exist in the Indonesian market.
Last week the federal statistics agency released data illustrating just how much higher exports pulled the economy up. At the same time, government spending largely made up for the slowdown in household consumption. This combination of factors showcases a multifaceted approach to economic management, as the government navigates the complexities of growth amid shifting consumer behavior.
President Subianto’s administration will need to implement strategies that not only stimulate immediate economic activity but focus on enhancing job quality and security for its citizens. The anticipated rise in manufacturing orders could serve as a catalyst for economic improvement, but consistent efforts will be necessary to ensure durable growth.