Indonesia’s economy likely grew by a steady 5.00% in the third quarter of 2025, supported by strong household spending, investment, and a temporary boost in exports ahead of new U.S. tariffs, according to a Reuters poll. The survey of 22 economists conducted between October 27 and November 3 estimated GDP growth at 5.00% year-on-year, just below the 5.12% recorded in the previous quarter. On a quarterly basis, GDP growth likely slowed to 1.40% from 4.04% in Q2, with official figures set for release on Wednesday.
Economists noted that government-driven investment and consumer spending were key contributors. “Investment and consumption driven by policy support is really the name of the game in Q3,” said Adam Ahmad Samdin of Oxford Economics. Retail sales climbed 4.7% in July and 3.5% in August—well above the 1.0% average rise in Q2—fueled by a 24.44 trillion rupiah ($1.5 billion) fiscal stimulus introduced in June, which included cash handouts and transport subsidies.
However, larger consumer sectors such as automotive sales remained weak. Jeemin Bang from Moody’s Analytics suggested that Indonesia could benefit more if fiscal policies targeted structural issues like youth unemployment and sluggish real wage growth.
Exports also played a role in sustaining momentum. Companies accelerated shipments to the U.S. before a 19% tariff took effect on August 7, while imports dipped in July and August before rebounding in September. “Goods exports continued to benefit from front-loaded shipments, while import growth was modest,” noted Radhika Rao of DBS Bank.
Looking ahead, Indonesia’s economy is projected to grow 4.9% in 2025 and maintain around 5.0% in subsequent years. Still, risks persist as domestic demand softens and exports face challenges from China’s uneven recovery. Despite Bank Indonesia’s 150-basis-point rate cuts since September 2024—with another 50 basis points expected by March 2026—growth momentum remains cautious for Southeast Asia’s largest economy.


Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 



