Indonesia’s Economic Growth Slows to 5.04% in Q3 2025
JAKARTA. Indonesia’s economic growth in the third quarter of 2025 stood at 5.04% year-on-year (YoY), slightly slower than the previous quarter’s 5.12% YoY. Quarterly (quarter-to-quarter/QtQ), the economy grew by 1.43%, down from 4.04% in the second quarter of 2025.
Deputy for National Accounts and Statistical Analysis at Statistics Indonesia (BPS), Moh. Edy Mahmud explained that the main driver of economic growth this quarter was still household consumption, which grew 4.89% YoY and contributed significantly 53.14% to the country’s gross domestic product (GDP).
“The largest contribution to GDP comes from household consumption, with a share of 53.14%, indicating that people’s spending remains stable,” said Edy in a press conference on Tuesday (5/11), as quoted by Kontan.co.id.
Aside from household consumption, Gross Domestic Fixed Capital Formation (PMTB) or investment also served as a key support, growing 5.04% YoY and contributing 20.09% to GDP. On the export side, growth reached 9.91% YoY, slightly slower than the previous quarter’s 10.67%, yet still positive thanks to higher values and volumes of non-oil and gas goods and services exports. Government consumption also improved, rising 5.49% YoY after contracting in the previous quarter.
From the production side, Indonesia’s economy continued to be supported by four main sectors: manufacturing, agriculture, trade, and construction, which together contributed about 65.02% to GDP. The manufacturing industry grew 5.54% YoY, agriculture 4.93%, trade 5.49%, and construction 4.21%.
“From the production perspective, most sectors recorded positive growth. The combined share of these four sectors accounts for around 65.02% of GDP,” Edy added.
Education Services Record the Highest Growth
Quoting Kontan.co.id, interestingly, the education services sector recorded the highest growth, at 10.59% YoY, followed by business services (9.94%) and other services (9.92%). According to Edy, the surge in the education sector was driven by the start of the new academic year and increased spending on education-related functions. Meanwhile, business services growth was supported by higher revenues from professional services and equipment rentals, and other services benefited from the rise in domestic and international tourism.
Edy explained that the quarterly slowdown in economic growth reflects a seasonal pattern that typically occurs each year. Nevertheless, the 5.04% growth in Q3 2025 demonstrates the stability of Indonesia’s domestic economy amid global uncertainties, with household consumption and investment continuing to serve as the main growth engines, together contributing more than 82% to the national GDP. (KEN)
