Indonesia's Economy Grows 5.39% in Q4 2025, Highest Among G20 Countries

Indonesia’s economy has slightly yet confidently outpaced its G20 peers, reporting a growth of 5.39% in the fourth quarter of 2025, the highest among the world’s largest economies. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that this impressive growth reaffirms the resilience of the national economy. On a year-over-year basis, the growth stood at 5.11%, which is also a positive sign. The manufacturing sector continues to grow steadily, evidencing active industrial policies. The Business Activity Index reached 52.6, signifying expansion. Consumer expectations are improving, raising the confidence index to 127 in January 2026. Domestic consumption increased by 7.9%, showcasing a strong internal economic momentum. On the external front, the country’s trade balance recorded a surplus of US$2.51 billion. The strong inflow of foreign investments fuels expectations of further economic uplift. Meanwhile, Indonesia’s international credit ratings remain at the ‘investment grade’ level, supporting investor confidence. Nevertheless, the government is vigilantly monitoring potential challenges, one of which is Moody’s negative outlook.