Indonesia’s Economy: Navigating Global Headwinds with Robust Domestic demand – A 2025 Mid-Year Update
Jakarta, Indonesia – Despite a challenging global landscape marked by trade tensions adn post-election uncertainty, Indonesia’s economy demonstrates remarkable resilience, maintaining an average growth rate of 5% between 2000 and 2024 [[3]]. Recent data indicates a stabilization around this long-term average,even as growth peaked at 5.3% in October. This performance positions Indonesia as a standout economy, notably considering its status as the world’s fourth most populous nation and its recent navigation of the global financial crisis and the COVID-19 pandemic.
Key Economic Indicators:
2024 GDP Growth: Indonesia’s gross domestic product (GDP) grew by 5.03% year-on-year in 2024 [[1]], and 5.02% in Q4 2024 [[2]].
Unemployment: The unemployment rate has fallen to 4.8% in 2025, the lowest level since 1998, demonstrating a strong recovery from the pandemic peak of 7.1% in 2020.
* Inflation: inflation remains contained, hovering near the lower limit of the 2.5ยฑ1% target corridor [[3]].
Navigating Trade Tensions:
The recent imposition of a 32% tariff on Indonesian products by the United