Indonesia’s economy grew 5.04% year-on-year in Q3 2025, broadly in line with previous quarters despite a challenging global environment. For many business leaders within the Indonesian Business Council (IBC), this confirms that domestic demand and macroeconomic policy continue to provide a stable base, even as global conditions remain uncertain. The IMF recently described Indonesia as a “global bright spot”, with growth expected to stay around 5.0% in 2025 and 5.1% in 2026, supported by fiscal and monetary policies, and with inflation well anchored in the target range.
The growth outcome is important because Indonesia has set higher growth targets for the years ahead. From a business perspective, achieving these targets will be supported by a combination of continued policy efforts and stronger competitiveness, including clear and consistent rules, efficient implementation, reliable infrastructure, and a workforce whose skills keep pace with industry needs. These elements directly shape investment decisions, expansion plans, and a firm’s ability to move up regional and global value chains.
For IBC, the present growth performance provides reassurance that the fundamentals remain sound, while also encouraging a continued focus on productivity, competitiveness, and policy consistency in partnership with the government. Steady headline numbers are viewed as an opportunity to plan, recalibrate, and invest with a medium-term horizon in mind. In that sense, the Q3 2025 outcome is seen as part of a longer journey in which the private sector and policymakers can work within a relatively stable environment to help support a more competitive and inclusive Indonesian economy in the years ahead.