According to data from Indonesia’s Central Statistics Agency cited by Antara News Agency, Indonesia’s economy will grow by 5.11% year-on-year in 2025, mainly driven by the increase in household consumption and growth in gross fixed capital formation.
The strong economic performance is related to increased population mobility, which has boosted spending on food and beverages, transportation, communications, and capital goods such as machinery and equipment.
Household consumption is the main driver of economic growth, contributing 2.62% and growing by 4.98% year-on-year.
Spending on hotels and restaurants also performed prominently, increasing by 6.38%, aligning with the strong growth during the year-end holiday travel peak. Investment also played a key role: gross fixed capital formation grew by 5.09%, mainly thanks to robust growth in machinery and equipment purchases.
From the production side, manufacturing is the largest contributor to economic growth, supported by the strong performance of export-oriented industries and increased output in agriculture, livestock, and fisheries.