Press Release

Indonesia’s Economy Remains Resilient Amid Global Uncertainty

Jakarta, November 5 – Statistics Indonesia (BPS) today released the latest data covering three key indicators: Gross Domestic Product (GDP), employment, and the Human Development Index (HDI). Together, these indicators provide important insights into the direction of the country’s economic and social development.

Despite global trade volatility, Indonesia’s economy has demonstrated resilience and continues to record solid growth. Indonesia’s GDP grew by 5.04 percent (year-on-year) in the third quarter of 2025, higher than the 4.95 percent recorded in the same period last year. For comparison, several neighboring countries also recorded growth amid international trade pressures: Vietnam (8.2 percent), China (4.8 percent), Malaysia (5.2 percent), and Singapore (2.9 percent).

According to Moh. Edy Mahmud, Deputy Chief Statistician for National Accounts and Statistical Analysis at BPS, “Indonesia’s economic growth this quarter was mainly supported by sustained household consumption.” This performance was underpinned by government policies to maintain inflation stability, as well as continued increases in online transactions through e-retail and marketplaces, and in electronic money, debit, and credit card transactions.

“The number of domestic tourist trips grew by 21.84 percent (year-on-year), while passenger numbers in several transportation modes such as railways and sea transport also increased,” said Edy during the BPS press conference on Tuesday (November 5).

From the expenditure side, exports of goods and services grew by 9.91 percent, driven by stronger non-oil and gas exports, particularly animal/vegetable fats and oils, iron and steel, machinery and electrical equipment, and motor vehicles and parts. The rising number of international tourist arrivals also contributed positively to the growth of service exports. Investment, represented by Gross Fixed Capital Formation (GFCF), grew by 5.04 percent, while government consumption expanded by 5.49 percent.

From the production side, the manufacturing sector grew by 5.54 percent, driven mainly by the food and beverage industry, basic metals, and chemical, pharmaceutical, and traditional medicine industries. “The manufacturing sector’s growth was largely supported by rising demand from both domestic and international markets,” Edy added.

The wholesale and retail trade; repair of motor vehicles and motorcycles sector expanded by 5.49 percent, supported by increased domestic trade activity, particularly in agricultural and manufactured goods. The information and communication sector recorded robust growth of 9.65 percent, driven by higher data traffic and rising e-commerce transactions. Meanwhile, the agriculture sector grew by 4.93 percent, supported by stronger domestic demand.

Regionally, all major islands recorded positive growth. Java Island grew by 5.17 percent and Sulawesi Island by 5.84 percent, both above the national average. Meanwhile, Maluku and Papua still recorded positive growth of 2.68 percent, though slightly slower than in the third quarter of last year.

Unemployment Rate Continues to Decline

Indonesia’s open unemployment rate (OUR) in August 2025 was recorded at 4.85 percent, down from 4.91 percent in August 2024. “The decline in the OUR was accompanied by a reduction in the number of unemployed persons to 7.46 million in August 2025,” said Edy. “The share of formal workers also increased from 42.05 percent in August 2024 to 42.20 percent in August 2025,” he added.

Over the past year, employment increased notably in agriculture (0.49 million workers), Over the past year, employment increased in several key sectors, including agriculture (up by 0.49 million people), accommodation and food services (up by 0.42 million), and manufacturing (up by 0.30 million).

In accordance with International Labour Organization (ILO) standards, individuals who worked at least one hour during the reference week are classified as employed. BPS further categorizes employed persons into three groups: full-time workers, those working 35 hours or more per week; part-time workers, those working 1–34 hours per week who are neither seeking nor available for additional work; and underemployed workers, those working 1–34 hours per week who are seeking or available for additional work. As of August 2025, full-time workers accounted for 67.32 percent of total employment, part-time workers 24.77 percent, and underemployed workers 7.91 percent.

Human Development Index (HDI) Continues to Improve

The final indicator released by BPS is the Human Development Index (HDI), which measures people’s access to development outcomes in economic, education, and health dimensions. A higher HDI indicates a better standard of living. Indonesia’s HDI in 2025 reached 75.90, an increase from 75.02 in the previous year, keeping the country in the “high human development” category.

The improvement in HDI was driven by gains across all components. Life expectancy at birth rose to 74.47 years, while expected years of schooling increased to 13.30 years, up from 13.21 years last year. The mean years of schooling reached 9.07 years, compared to 8.85 years in 2024.

Meanwhile, adjusted real per capita expenditure rose from Rp12.3 million in 2024 to Rp12.8 million in 2025. “Adjusted real per capita expenditure reflects the average annual consumption per person, measured in constant 2012 prices with South Jakarta as the reference area. The figure is adjusted for inflation and purchasing power parity,” explained Edy.

Regionally, the three provinces with the highest HDI were Jakarta (85.05), Yogyakarta (82.48), and Riau Islands (80.53) — all within the high development category. The lowest HDI was recorded in Papua Highlands Province (54.91). Meanwhile, West Java recorded the highest HDI increase, rising by 0.98 points year-on-year.

Narahubung Media

Nashrul Wajdi

Plt. Kepala Biro Humas dan Hukum

Badan Pusat Statistik 

[email protected]