REPUBLIKA.CO.ID, JAKARTA — Indonesian Minister of Finance Purbaya Yudhi Sadewa said that the realization of economic growth in the third quarter of 2025 recorded at 5.04 percent indicates that the state budget is being managed effectively. It also strengthened close coordination with monetary authorities and the financial sector.
“The State Budget plays a role in maintaining people's purchasing power and supporting the performance of the business world to be more competitive, especially at the global level. Fiscal support is also provided through the prudent placement of IDR 200 trillion of state coffers to ensure adequate economic liquidity, including nonfiscal support for debottlenecking in order to realize higher investments in a sustainable manner,” Purbaya said in an official statement quoted in Jakarta, Friday (7/11/2025).
Overall, the economic growth momentum positively impacted job creation of 1.9 million people. The number of unemployed fell by 4 thousand people to 7.46 million compared to August 2024 so the open unemployment rate (TPT) fell from 4.91 percent in August 2024 to 4.85 percent in August 2025.
In terms of domestic demand, household consumption grew by 4.89 percent (yoy), as population mobility increased, digital transactions grew, and government policy support increased.
Meanwhile, government consumption grew 5.49 percent with spending on goods and employee spending growing 19.3 percent and 9.0 percent respectively, a manifestation of the government's commitment to maintain economic growth momentum and sustain purchasing power through accelerating and optimizing spending.
On the other hand, investment or Gross Fixed Capital Formation (PMTB) grew 5.04 percent (yoy) supported by businesses' confidence in the national economic outlook as well as the government's commitment to creating a stable business climate and supporting business expansion.
On the trade side, real exports of goods and services grew by a significant 9.91 percent (yoy), being one of the main supports of growth.
Strengthening domestic industrial activity, increased demand from major trading partner countries, and strong competitiveness of Indonesia's export products are driving factors.
Then, from the production side, the processing industry sector grew solidly on the back of strong demand. The impressive performance is particularly driven by downstream strategic subsectors.
Minister Purbaya explained that efforts to maintain purchasing power and support the performance of the business world continue to be carried out through optimization of spending through stimulus programs of Rp34.2 trillion and 8 acceleration programs worth Rp15.7 trillion in the fourth quarter of 2025.
High-value-added investments and exports are strengthened through Danantara's role in leveraging private contributions, as well as debottlenecking by the formation of the Task Force on Acceleration of Government Strategic Programs (Task Force P2SP).
With the latest data developments, plus efforts to optimize the role of fiscal as an enabler of economic activity and nonfiscal policies for a better business climate, the government is optimistic the economy for the whole of 2025 will reach the 5.2 percent target.
“In the future, the government continues to push for the engine of economic growth to run faster. Fiscal policy, the financial sector, and a healthy investment climate will continue to be synergized to create high growth. It is not only high, but also stable and can create sustainable equalization of public welfare,” Menkeu said.
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