Indonesia’s economic outlook Q3 2025 report

Indonesia’s economic outlook Q3 2025

A short report by Cimigo market research on the outlook for Indonesia’s economy based on key results from Q2 2025. It examines the economic environment, focusing on key indicators beyond GDP and providing a more nuanced view of the country’s economic situation.

 

Indonesia’s economy is showing cautious signs of recovery

The Q3 2025 GDP growth rate of 5.04% is primarily driven by the accommodation, food and beverage sectors, along with health and corporate services. The manufacturing sector, which constitutes 19% of GDP, also recorded a year-on-year growth of 5.54%.

 

The Manufacturing Purchasing Managers’ Index (PMI) indicates sustained expansion

It remains above 50, reflecting a positive shift in manufacturing activity and exports, which surged by 9.9%. However, amid rising inflation, household budget pressures, and job-finding difficulties, consumer confidence is faltering, impacting discretionary spending. Year-to-date retail sales are up by 5.8%, yet some sectors, such as communication equipment, are declining.

 

Indonesia economic outlook Q3 2025

For more of Cimigo’s perspective on the outlook for Indonesia’s economy, please download the report.

Looking for more insights on Indonesia? Explore other reports from Cimigo here.