Household Consumption Becomes the Driver of Indonesia's Economic Growth in the Third Quarter

Jakarta: The Central Statistics Agency (BPS) recorded that the Indonesian economy grew 5.04 percent year-on-year (yoy) in the third quarter of 2025, with the highest growth source coming from household consumption, at 2.54 percent.

"Looking at the sources of growth in the third quarter of 2025, household consumption remains the main source of growth, or the largest source of growth, at 2.54 percent," said BPS Deputy for Balance Sheet and Statistical Analysis, Moh. Edy Mahmud, in a press conference in Jakarta, as quoted by Antara, Wednesday, November 5, 2025.

In addition to household consumption, economic growth in the third quarter of 2025 was also supported by net exports, with growth of 2.15 percent and gross fixed capital formation (PMTB) of 1.59 percent.

Structurally, household consumption contributed 53.14 percent to total gross domestic product (GDP), followed by GFCF at 29.09 percent and exports at 23.64 percent.

Household consumption growth year-on-year (yoy) reached 4.89 percent, driven by improvements in transportation and communications, as well as restaurants and hotels, in line with increasing population mobility and domestic tourism activity.

The manufacturing industry is a major contributor

In terms of production or business sectors, the manufacturing industry was the main contributor to economic growth in the third quarter, contributing 1.13 percent.

The manufacturing industry's contribution to total GDP reached 19.15 percent. Furthermore, agriculture, trade, construction, and mining, which together with the manufacturing industry contributed 65.02 percent of GDP, contributed 5.54 percent.

On an annual basis, the manufacturing industry grew 5.54 percent year-on-year, driven by the food and beverage industry; base metals; and chemicals, pharmaceuticals, and traditional medicines, in line with strong domestic demand and increasing exports.

Spatially, all regions recorded positive growth. Sulawesi recorded the highest growth at 5.84 percent year-on-year. Meanwhile, Java remained the largest contributor to national GDP at 56.68 percent, followed by Sumatra at 22.42 percent.

Overall, Indonesia's economy, based on GDP in the third quarter of 2025, reached IDR 6,060 trillion at current prices (ADHB) and IDR 3,444.8 trillion at constant prices (ADHK).

Quarter-to-quarter (QTQ) economic growth reached 1.43 percent, while cumulative growth from January to September 2025 (CTC) was recorded at 5.01 percent.