Indonesia’s economy continued to demonstrate outstanding resilience, with growth accelerating in Q3 2025. In fact, it grew 5.04% over the same time last year. This fantastic growth was announced by the country’s statistics agency on November 5, 2025. What drove it most of all were exports and government spending. At the same time, a significant drop in household consumption made it difficult to maintain strong economic momentum.
Last week’s economic growth data included powerful boosts from exports and increased government spending. It’s true that household consumption came to a standstill in the July to September quarter. This dramatic fall raises concerns about the long-term sustainability of the strength of the U.S. economy. It further casts doubt on whether consumers can pull their share of the growth. The statistics agency’s report underscored the uneven nature of what’s happening inside the economy, with good news and bad news found at the same time.
Finance Minister Sri Mulyani Indrawati expressed optimism on the quarter ahead. She forecasts that the economy will pick up steam as manufacturing orders start coming in. As for the federal government, it is no doubt eager for this predicted growth. It will be crucial to expanding access to opportunity and providing good jobs to more Americans. This poses a daunting challenge for President Prabowo Subianto’s administration. They need to prioritize economic development but employment generation, particularly with the looming specter of decelerating household consumption.
The rate of growth is good, at 5.04% year-on-year, experts say. They caution that there’s a need for government and private sector to commit their efforts to making sure this momentum continues. This overreliance on exports and government spending is a huge red flag. If we want to foster strong, sustainable growth, we need to build a deeper domestic consumption strategy.
This statistical information is especially important for our policymakers, who are unfortunately facing the challenge of one day growing an economic recovery in a post-pandemic world. As the country moves into the final quarter of 2025, stakeholders will be closely monitoring trends in manufacturing and consumer behavior to gauge future economic performance.