#Macroeconomics
Indonesia’s economy expands 5.04 percent in third quarter 2025
Indonesia’s economy grew by 5.04 percent year-on-year (yoy) in the third quarter (Q3) of 2025, slightly moderating from 5.12 percent in the previous quarter but remaining above market expectations, said a report from Statistics Indonesia (BPS) released on Wednesday, November 5, 2025.
Indonesia’s unemployment falls to 7.46 million in August 2025: BPS
Indonesia’s unemployment rate continued to decline this year, with 7.46 million people recorded as unemployed as of August 2025, down slightly from the same period last year, according to data from Statistics Indonesia (BPS).
BI holds key rate at 4.75% to balance growth, stability
After three consecutive rate cuts, the Indonesian Central Bank (BI) has decided to hold its benchmark interest rate at 4.75 percent, maintaining a delicate balance between supporting economic growth and preserving financial stability amid persistent global uncertainty.
Indonesia moves closer to joining BRICS’ new development bank
Indonesia has allocated funds to purchase shares in the BRICS-backed New Development Bank (NDB), marking another step in Jakarta’s growing engagement with the China-led bloc of emerging economies.
Regional leaders protest budget cuts as fiscal tensions rise between central, local governments
Eighteen regional heads visited Finance Minister Purbaya Yudhi Sadewa’s office in Jakarta on Monday, October 7, 2025 voicing protests over the government’s decision to reduce the 2026 regional transfer budget (TKD).
U.S. government shutdown halts Indonesia–U.S. trade tariff negotiations
Indonesia’s ongoing trade tariff negotiations with the United States have been temporarily suspended following the U.S. government shutdown, Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed on Tuesday, October 7, 2025.
Ahok urges tax and customs reform to drive Indonesia’s economic growth
Former Commissioner at State energy company Pertamina, Basuki “Ahok” Tjahaja Purnama, has urged the government to focus on fiscal discipline and comprehensive reforms in the tax and customs sectors to accelerate national economic growth.
Economist questions BPS methodology behind Q2 growth
Concerns have mounted over Indonesia’s official economic growth data after the Statistics Indonesia (BPS) reported second-quarter (Q2) 2025 growth of 5.12 percent, with an economist arguing that it does not match leading indicators.
Deloitte: Asia-Pacific climate transition could boost economy by US$50 T by 2070
A new Deloitte report projects that the Asia-Pacific climate transition could add US$50 trillion (Rp833.054 trillion) to the region’s economy by 2070, while unlocking up to US$90 trillion in investment opportunities by 2050 for new technologies and supporting industries.
Finance Minister to redirect state funds from BI to lenders starting September 12
Minister of Finance Purbaya Yudhi Sadewa has announced that idle state funds, held at the Indonesian Central Bank (BI), will be placed into the banking system beginning Friday, September 12, 2025 and allocated to state-owned lenders under the Himbara group of State banks as well as Islamic banks.
Finance Minister plans Rp200 trillion liquidity injection to revive economy
Minister of Finance, Purbaya Yudhi Sadewa, has announced plans to revive Indonesia’s economic engines by channeling government funds from the Indonesian Central Bank (BI) into the banking sector.
Government-BI agree on burden-sharing to fund housing, village cooperatives
The government and the Indonesian Central Bank (BI) have agreed on a new burden-sharing mechanism to support priority programs under President Prabowo Subianto’s Asta Cita agenda, in particular the Public Housing Program and the Red-and-White Village Cooperatives initiative.