Indonesia Records 5.11% Economic Growth in 2025, Falls Short of Govt Target

3 hours ago 1

February 5, 2026 | 01:28 pm

Office buildings in Jakarta's central business district on November 29, 2025. Tempo/Tony Hartawan

TEMPO.CO, Jakarta - Indonesia's economy grew 5.11 percent year-on-year (yoy) in 2025, according to Statistics Indonesia (BPS), lower than government target of 5.2 percent outlined in the State Budget (APBN).

BPS Head Amalia Adininggar Widyasanti also announced that Indonesia posted 5.39 percent economic growth in the last quarter of 2025. "The economic growth throughout 2025 amounted to 5.11 percent," she said during a hybrid press conference to release the BPS data on Thursday, February 5, 2026.

The fourth-quarter growth was marked as the highest since the COVID-19 pandemic levels. In 2025, during the first quarter, the Indonesian economy expanded by 4.87 percent, followed by 5.12 percent in the second quarter and 5.04 percent in the third quarter.

Earlier, the Institute for Economic and Social Research Faculty of Economics and Business, University of Indonesia (LPEM FEB UI) had predicted that economic growth would not reach the government's target of 5.2 percent, but only around 5.05 percent.

"But the stimulus package provided by the government, combined with seasonal factors, was able to drive growth in the final quarter of 2025," LPEM FEB UI researcher Teuku Riefky said as quoted on Thursday, February 5, 2026.

Finance Minister Purbaya Yudhi Sadewa also predicted that economic growth throughout 2025 would be slightly below the 5.2 percent target set in the State Budget. Purbaya predicted that the growth rate for 2025 would be around 5.1 percent.

"Approaching 5.2 percent, or 5.1 percent. There is a possibility (for economic growth to be below the APBN target)," said Purbaya to reporters in Jakarta on Tuesday, February 3, 2026, as quoted by Antara.

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