FX.co ★ Indonesia 2025 GDP Growth Below Forecast

In 2025, Indonesia's economy grew by 5.11%, slightly below the official target of 5.2%. This expansion, the country’s strongest in three years, occurred despite natural disasters in three provinces the previous year. The growth was primarily fueled by an increase in private consumption, which rose to 4.98% from 4.94% in the third quarter, and an uptick in fixed investment, climbing to 5.09% from 4.61%. Exports also saw an accelerated growth rate at 7.03% compared to 6.85%, even with the introduction of new U.S. tariffs. In contrast, import growth cooled to 4.77% from 8.15%, indicating a dip in domestic demand due to weakened purchasing power and a declining rupiah. Looking ahead to 2026, the GDP growth target is set at 5.2%. Last month, the central bank upheld its GDP growth forecast for 2026, projecting it to be between 4.9% and 5.7%.