Indonesia's Economic Growth Sets Records at G20

Indonesia has reached record economic growth among G20 countries in the fourth quarter of 2025. According to Coordinating Minister for Economic Affairs Airlangga Hartarto, the growth achieved 5.39%, the highest among G20 nations. President Prabowo Subianto emphasized the significance of this achievement in strengthening the country’s international stance.

This success was driven by increased domestic consumption and activity in the manufacturing sector. The Purchasing Managers’ Index for manufacturing was recorded at 52.6, indicating continued expansion. Consumer confidence also saw a boost with the Consumer Confidence Index reaching 127 in January 2026, marking a notable improvement from previous months.

Externally, Indonesia continued to excel, showing a steady positive trade surplus for 68 consecutive months. By December 2025, the surplus stood at $2.51 billion. Additionally, investors have maintained strong support for the market, as evidenced by significant volumes of foreign and domestic direct investments.

The government plans to sustain and enhance current economic strategies, focusing on increasing state revenues and maintaining investment levels.

However, there are present challenges, such as a negative outlook from ratings agencies that may impact the nation’s credit policy. Experts believe that Indonesia should aim to improve economic resilience to tackle these challenges in the future.