JAKARTA - Indonesia's economy expanded 5.11 percent in 2025, Statistics Indonesia (BPS) announced on January 5, falling short of the government's 5.2 percent target set in the state budget. The growth accelerated from 5.03 percent in 2024.

According to Statistics Indonesia, Java, which is where the Jakarta Metropolitan Area is located, accounted for 56.93 percent of GDP and grew 5.30 percent. Eastern Indonesia showed weaker performance, with Maluku and Papua growing just 2.68 percent compared to over six percent the previous year.

For decades, Indonesia’s economic growth has been concentrated in Java due to better infrastructure, higher investment, and the concentration of government and business centers on the island. As a result, Java is one of the world’s most densely populated islands with over 156 million people residents, holding more than 50% of Indonesia’s total population.

Overall, Indonesia’s fourth-quarter growth reached 5.39 percent year-on-year, the strongest quarterly performance since mid-2022. Finance Minister Purbaya Yudhi Sadewa called the result "pretty good" despite missing his earlier estimate, noting the upward trend in recent quarters.

As of 2025, Indonesia’s transportation and storage led sectoral growth in the quarter at 8.98 percent while gross fixed capital formation posted the strongest expenditure growth at 6.12 percent.

The government has set an ambitious growth target of 6 percent for 2026, rising to 6.5 percent in 2027 and approaching 8 percent by 2029. The 6 percent target actually exceeds the government's target of 5.4% in the State Budget (APBN).

Speaking to the media on February 5, Minister Sadewa said the government plans to spend faster early in the year and work more closely with Bank Indonesia to maintain liquidity. The goal is to strengthen investor confidence, increase investment and job creation, and protect financial stability.

Indonesia’s GDP in 2025 was about Rp23,821 trillion, and the GDP per capita was around Rp83.7 million (about USD 5,083) per person for the year.