Short Economic Summary: Indonesia in 2025
n 2025, Indonesia maintained solid economic momentum, continuing to be one of Southeast Asia’s most resilient and strategically important markets. Despite global uncertainty and external headwinds, macroeconomic fundamentals remained stable and consumption continued to drive growth.
📊 Economic Growth and Stability
GDP expanded by approximately 5.11% in 2025 — a modest acceleration from 2024 and above many regional peers.
Growth was broad-based, supported by government consumption, investment, and rising domestic demand, with services and trade sectors showing particularly strong performance.
Forecasts from international institutions project Indonesia’s real GDP will stay around 5.0% in 2025 and 5.1% in 2026, showing durable expansion in the medium term.
📈 Labour Market and Earnings
The unemployment rate hovered around ~4.8% mid-2025, one of the lowest levels in the past decade, reflecting ongoing job creation broadly across sectors such as trade, services, and agriculture.
Employment expanded by roughly 2.5% year-on-year, indicating an increasing number of Indonesians entering the workforce and finding jobs.
Average monthly wages also showed growth, with reported average earnings at around IDR 3.33 million (~USD 198) in August 2025 — up modestly from a year earlier.
Minimum wages across regions increased in 2025 as part of national policy to support worker welfare, and further increases (5.3%–7.3%) were anticipated for subsequent years under revised wage formulas, though some business groups expressed concern about cost pressures.
💰 Inflation and Prices
Inflation in 2025 remained moderate and within manageable levels for most of the year, allowing consumers and businesses to plan with relative confidence. The central bank’s policy framework kept price growth stable, even as global commodity prices fluctuated.
🛍 Domestic Consumption
Household consumption continued to be the backbone of Indonesia’s economy, accounting for more than half of GDP growth. Rising domestic demand — driven by a growing middle class — buffered the economy against slower external demand.
🏦 Investment and Exports
Foreign direct investment remained robust, with particular strength in sectors such as manufacturing, digital services, and infrastructure, although global trade tensions had some dampening effect on export growth.
Mineral processing, renewable energy projects, and digital economy investments attracted sustained interest from multinationals.
📌 Outlook into 2026
Looking ahead, the Indonesian economy is projected to continue its stable growth trajectory in 2026, supported by:
Strong domestic demand
Policy frameworks promoting investment
Continued infrastructure spending
A demographic dividend with a youthful workforce
Indonesia’s economic resilience, large consumer market, and improving labor conditions reinforce its position as a priority destination for international business and long-term strategic partnerships.