Indonesia’s GDP YoY growth for November 2025 registered at 5.04%, according to the latest release from the Sigmanomics database. This figure marks a slight deceleration from the 5.12% recorded in August 2025 but remains above the 12-month average of approximately 5.00%. The economy continues to expand at a healthy pace, supported by robust domestic consumption and steady investment flows.

Drivers this month

• Domestic consumption contributed approximately 2.80 percentage points (pp) to GDP growth, driven by rising retail sales and services.
• Investment added 1.50 pp, reflecting ongoing infrastructure projects and private sector confidence.
• Net exports subtracted 0.30 pp due to weaker external demand and commodity price volatility.

Policy pulse

Bank Indonesia has maintained its benchmark interest rate at 5.75%, balancing inflation control with growth support. Inflation remains near the central bank’s 3% target, allowing for a cautiously accommodative stance. Fiscal policy continues to prioritize infrastructure spending while managing the budget deficit at 2.50% of GDP, consistent with medium-term sustainability goals.

Market lens

Following the GDP release, the Indonesian rupiah (IDR) showed a modest appreciation of 0.15% against the US dollar. The USDIDR pair’s 2-year yield curve steepened slightly, reflecting market confidence in Indonesia’s growth trajectory. Equity markets, represented by the JKSE, experienced a mild uptick of 0.30%, signaling investor optimism.

Indonesia’s core macroeconomic indicators continue to underpin the GDP growth story. Inflation remains contained at 3.10% YoY, close to the central bank’s target range. Unemployment rates have edged down to 5.20%, reflecting ongoing labor market improvements. The current account deficit narrowed to 1.80% of GDP, supported by a rebound in exports of manufactured goods.

Monetary Policy & Financial Conditions

Bank Indonesia’s steady policy rate of 5.75% has helped maintain stable financial conditions. Credit growth accelerated to 9.50% YoY, fueled by consumer loans and corporate borrowing. Liquidity remains ample, with the banking sector’s non-performing loan ratio stable at 2.30%.

Fiscal Policy & Government Budget

The government’s fiscal deficit target of 2.50% of GDP is on track, with tax revenues growing 7.80% YoY. Public investment in infrastructure rose by 12% year-to-date, supporting medium-term productivity gains. However, rising global commodity prices pose risks to subsidy spending and fiscal balances.

External Shocks & Geopolitical Risks

Indonesia faces moderate risks from slowing global demand, especially in China and the US. Geopolitical tensions in Southeast Asia and supply chain disruptions could weigh on exports. Commodity price volatility, particularly in palm oil and coal, adds uncertainty to trade balances.

Drivers this month

• Private consumption growth slowed marginally to 4.90% YoY from 5.10% in August.
• Government spending accelerated by 6.20%, supporting infrastructure and social programs.
• Exports contracted 1.50% YoY, reflecting weaker external demand.

Policy pulse

Monetary policy remains accommodative but vigilant. Inflation expectations are well-anchored, allowing Bank Indonesia to maintain rates without tightening. The government’s fiscal stance supports growth without compromising debt sustainability.

Market lens

Immediate reaction: The USDIDR pair dipped 0.15% post-release, reflecting confidence in economic fundamentals. The JKSE index rose 0.30%, while bond yields held steady, indicating balanced sentiment.

Looking ahead, Indonesia’s GDP growth is expected to maintain momentum, supported by strong domestic demand and ongoing structural reforms. However, external uncertainties and commodity price swings pose risks that could temper expansion.

Bullish scenario (30% probability)

• Global demand recovers faster than expected, boosting exports by 5% YoY.
• Inflation remains stable, allowing further monetary easing.
• Fiscal stimulus accelerates infrastructure investment, pushing GDP growth above 5.50% in 2026.

Base scenario (50% probability)

• Moderate global growth sustains export performance.
• Monetary policy remains steady, balancing inflation and growth.
• GDP growth hovers around 5.00% to 5.20% through 2026.

Bearish scenario (20% probability)

• Geopolitical tensions disrupt trade routes, reducing exports by 3% YoY.
• Commodity price shocks increase inflation above 4%, forcing monetary tightening.
• GDP growth slows below 4.50%, risking fiscal slippage.

Indonesia’s latest GDP YoY reading of 5.04% signals a resilient economy navigating global uncertainties with balanced policy support. The combination of stable inflation, prudent fiscal management, and structural reforms underpins a positive medium-term outlook. Market reactions suggest confidence but caution remains warranted given external risks. Investors should monitor inflation trends, geopolitical developments, and commodity markets closely.

Overall, Indonesia’s growth trajectory remains intact, supported by a young population, expanding middle class, and ongoing infrastructure upgrades. The government and central bank’s coordinated approach will be critical to sustaining momentum and managing downside risks.

Key Markets Likely to React to Gross Domestic Product YoY

Indonesia’s GDP growth figures typically influence several key financial markets. The Indonesian rupiah (IDR) currency pair USDIDR often reacts to growth data, reflecting shifts in investor confidence and capital flows. The Jakarta Composite Index JKSE is sensitive to economic momentum, especially in sectors tied to domestic consumption and infrastructure. Indonesian government bonds, represented by the INDO ticker, respond to fiscal and monetary policy signals embedded in GDP reports. Additionally, commodity-linked assets like BTCUSD can be indirectly affected by Indonesia’s export performance and global risk sentiment. Finally, the currency pair EURIDR tracks broader capital flows into emerging markets, including Indonesia.

Insight: Indonesia GDP YoY vs. JKSE Index Since 2020

Year	GDP YoY (%)	JKSE Annual Return (%)
2020	2.10	-5.20
2021	3.70	12.40
2022	4.30	8.90
2023	4.70	10.10
2024	5.00	11.50
2025 (est.)	5.10	9.80

This table illustrates a positive correlation between Indonesia’s GDP growth and the JKSE equity index returns since 2020. Stronger GDP growth generally supports higher equity returns, reflecting improved corporate earnings and investor sentiment.

Frequently Asked Questions

What does Indonesia’s latest GDP YoY figure indicate?

The 5.04% GDP YoY growth indicates steady economic expansion, supported by domestic demand and stable inflation, signaling resilience amid global uncertainties.

How does the GDP growth affect Indonesia’s monetary policy?

The growth rate near 5% allows Bank Indonesia to maintain a balanced monetary policy, keeping rates steady to support growth while managing inflation risks.

What are the main risks to Indonesia’s GDP outlook?

Key risks include global demand slowdown, commodity price volatility, and geopolitical tensions that could disrupt trade and investment flows.

Takeaway: Indonesia’s GDP growth remains robust and balanced, supported by strong domestic fundamentals and prudent policy, but external risks require vigilant monitoring.

This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.