Indonesia’s economy continues to outperform global peers, recording one of the highest growth rates among G20 nations in 2025. As the Prabowo-Gibran administration completes its first year, key indicators point to solid macroeconomic stability and resilient domestic demand. With inflation under control and exports surging, the government is doubling down on inclusive stimulus to sustain momentum.
Key Facts & Background
- Coordinating Minister for Economic Affairs Airlangga Hartarto announced that Indonesia’s Q2 2025 GDP growth reached 5.12%, among the highest in the G20.
- Inflation was recorded at 2.65% in September 2025, reflecting effective coordination between the government and Bank Indonesia.
- Food prices remained relatively stable, supporting household purchasing power.
- Indonesia’s export trade balance has posted positive results for 64 consecutive months.
- Foreign exchange reserves are maintained at Rp150 trillion, supporting external sector resilience.
- Credit growth in the banking sector reached 10–11%, indicating healthy financial intermediation.
- Over 3.46 million MSMEs, farmers, and fishers received financing through Kredit Usaha Rakyat (KUR) and other liquidity programs.
- The government plans to continue short-term stimulus packages, including:
- Food assistance
- Support for tourism and labor-intensive sectors
- Revitalization of mining operations
- Modernization of fishing vessels
- Programs to strengthen grassroots economic resilience
Strategic Insights
Indonesia’s economic performance in 2025 reflects a convergence of sound macroeconomic management, targeted fiscal interventions, and resilient domestic consumption. The 5.12% growth rate not only places the country among the top performers in the G20 but also signals a successful transition under the Prabowo-Gibran administration. This achievement is particularly notable given the global headwinds—ranging from geopolitical tensions to supply chain disruptions—that have dampened growth in many advanced and emerging economies.
The government’s ability to maintain inflation at 2.65% while supporting real sector expansion demonstrates effective policy coordination. Bank Indonesia’s monetary prudence, coupled with fiscal support for vulnerable sectors, has helped preserve purchasing power and stabilize food prices. This balance is crucial in a country where household consumption accounts for over half of GDP and where inflation disproportionately affects lower-income groups.
Export resilience is another cornerstone of Indonesia’s economic strength. A 64-month streak of trade surpluses reflects competitiveness in key sectors such as commodities, manufacturing, and agriculture. Combined with robust foreign exchange reserves, this provides a buffer against external shocks and enhances investor confidence. The continued growth in credit and banking intermediation further suggests that liquidity is flowing into productive sectors, especially MSMEs, which are vital for employment and innovation.
Looking ahead, the administration’s focus on inclusive stimulus—ranging from tourism recovery to rural infrastructure—indicates a commitment to broad-based development. Programs like KUR and vessel modernization not only inject capital into underserved communities but also lay the groundwork for long-term productivity gains. These efforts, if sustained, could deepen economic diversification and reduce regional disparities.