Indonesia’s economic growth in 2025 emerged as one of the strongest among major economies, placing the country at the top of the G20 growth rankings. Official data from Statistics Indonesia (BPS) show that the national economy expanded by 5.11% throughout 2025, surpassing several large economies despite persistent global uncertainty.
Strong domestic demand, solid investment activity, and rising mobility supported growth, especially toward the end of the year. As a result, Indonesia closed 2025 with positive momentum, reinforcing its position as one of the most resilient economies among G20 members.
Indonesia Economic Growth 2025 Leads G20 Rankings
Indonesia’s 5.11% full-year growth in 2025 currently ranks first among G20 countries that have released their annual data. This performance places Indonesia ahead of China, which recorded 5.0% growth, followed by Saudi Arabia at 4.5% and Singapore at 4.4%.
However, the ranking remains provisional, as only 12 G20 members had published their 2025 GDP figures as of early February 2026. Nevertheless, the available data highlight Indonesia’s strong relative performance amid a challenging global environment marked by slower growth and lingering inflation pressures.
Q4 2025 GDP Performance Strengthens Annual Growth
Indonesia closed the year with robust momentum, driven by strong economic activity in the fourth quarter. BPS reported that gross domestic product grew 5.39% year on year in Q4 2025, while quarter-on-quarter growth reached 0.86%. This result marked the highest fourth-quarter annual growth since the COVID-19 pandemic.
According to BPS Head Amalia Adininggar Widyasanti, “On a year-on-year basis, the economy in the fourth quarter of 2025 grew 5.39% compared to the same quarter in the previous year.” The strong year-end performance played a critical role in lifting full-year growth above 5%.
Domestic Consumption and Investment Drive Expansion
Household consumption continued to anchor economic expansion during the final quarter of 2025. BPS data show that consumer spending remained the largest contributor to growth, reflecting steady purchasing power and rising mobility. Amalia explained, “In terms of growth sources, household consumption remained the largest contributor, providing 2.68 percentage points.”
In addition, investment activity strengthened, supported by both domestic and foreign capital. “Economic growth in the fourth quarter of 2025 was also supported by gross fixed capital formation, which contributed 1.96 percentage points, and government consumption, which contributed 0.43 percentage points,” she said. Meanwhile, online retail and marketplace transactions grew 12.2% quarter to quarter, reinforcing consumption trends.
Indonesia Economic Growth 2025 Outpaces G20 Average
Beyond short-term performance, Indonesia’s economic growth in 2025 also stood well above the broader G20 average. Based on OECD data available up to the third quarter of 2025, the average economic growth of G20 countries over the past two years reached only 2.79%.
In contrast, Indonesia posted an average growth rate of 5.04% over the same period, exceeding the G20 average by 2.25 percentage points. This gap highlights Indonesia’s consistent growth trajectory compared with other major economies facing slower expansion.
ASEAN Comparison Shows Regional Competition
Despite leading the G20 rankings, Indonesia did not record the highest growth rate within Southeast Asia. Among ASEAN countries that have released 2025 GDP data, Vietnam ranked first with 8.02% growth.
Indonesia placed second, outperforming Malaysia, which grew 4.9% year on year, and Singapore, which recorded 4.8% growth. This comparison underscores intensifying regional competition while also confirming Indonesia’s solid position among major ASEAN economies.
Growth Momentum Amid Global Economic Challenges
Indonesia’s strong 2025 performance reflects a combination of resilient domestic demand, steady investment, and supportive macroeconomic policies. While the G20 ranking remains temporary, current data positions Indonesia as a leading growth performer among major economies.
Looking ahead, maintaining consumption strength and investment confidence will prove essential as global growth remains uneven. Still, Indonesia’s 2025 results demonstrate its capacity to sustain expansion even amid persistent global challenges.
Source: cnbcindonesia.com, radiodms.com
Image: alexmx / Canva
