Household Consumption Remains Key Driver of Indonesia's Economic Growth in Q3 2025

Summary: In Q3 2025, Indonesia's economy grew by 5.04% year-on-year (yoy), with household consumption contributing over 53% to GDP. Supported by sectors like transportation, hospitality, and non-oil exports, the growth highlights domestic demand's central role. Gross Fixed Capital Formation (PMTB) and exports also played significant roles, driving over 82% of national GDP growth.

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1. Household Consumption Leads Economic Growth

The Indonesian Central Statistics Agency (BPS) reported that household consumption remained the primary driver of economic growth in Q3 2025, contributing 53.14% to the nation's Gross Domestic Product (GDP). This figure reflects a 4.89% yoy increase, up from 4.7% in the previous quarter.

"All components showed positive growth, but the largest contribution to GDP came from household consumption, at 53.14% in Q3 2025," stated Moh Edy Mahmud, Deputy for Statistical Balance and Analysis at BPS, during a press conference on November 5, 2025.

The growth was fueled by rising mobility, fuel sales, and increased usage of rail and maritime transport, signaling a rebound in post-pandemic economic activities.

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2. Key Sectors Driving Consumption Growth

Two sectors stood out in boosting household spending:

1. Transportation and Communication: Grew by 6.41% due to higher population mobility, vehicle fuel sales, and passenger traffic in rail and sea transport.
2. Restaurants and Hotels: Surged by 6.32%, driven by increased domestic tourism compared to the same period in 2024.

These sectors highlight Indonesia's recovery in mobility and leisure, aligning with broader economic reopening trends.

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3. Investment (PMTB) and Exports Add Momentum

While household consumption led the charge, Gross Fixed Capital Formation (PMTB) contributed 29.09% to GDP, meaning 82.23% of national GDP growth stemmed from consumption and investment.

Meanwhile, exports recorded the highest growth rate at 9.91% yoy, driven by non-oil goods and service exports. This surge underscores Indonesia's strengthening position in global trade.

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4. Visual Representation of Growth

An illustration depicting Indonesia's economic growth trends in Q3 2025.

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5. Conclusion: Domestic Demand and Global Trade Power Growth

The Q3 2025 data paints a resilient economic picture for Indonesia. Household spending and investment formed the backbone of growth, while exports demonstrated the country's capacity to thrive in international markets. With sectors like tourism and transportation rebounding, Indonesia's economy continues to leverage both internal recovery and external demand to sustain its upward trajectory.

🌍 Key Takeaway: Indonesia's growth model in 2025 hinges on balancing domestic consumption with strategic investments and export diversification. 📈