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View all search results2025 GDP growth misses target
Economic growth improved slightly last year but failed to meet the government’s target set out in the state budget.
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Black sky: Thick clouds cover residential areas and high-rise buildings on Jan. 23, 2026, in Jakarta. (Antara/Muhammad Adimaja)
E
conomic growth improved slightly last year but failed to meet the government’s target set out in the state budget, new data shows, raising further doubts about reaching President Prabowo Subianto’s goal of 8 percent gross domestic product growth.
Indonesia’s economy expanded 5.11 percent last year, Statistics Indonesia (BPS) announced in a press conference on Thursday, accelerating from 5.03 percent recorded in 2024.
Fourth-quarter growth came in at 5.39 percent year-on-year (yoy), which Finance Minister Purbaya Yudhi Sadewa, who took the ministerial mantle in September, admitted “was lower than my estimate or my promise, [...] but, honestly, it’s pretty good”.
He told reporters on Thursday that “what’s important is that there’s a turnaround of the economy,” noting that the growth figure was the highest since the third quarter of 2022.
The latest GDP report comes two days after the finance minister said economic growth would reach 6 percent this year, 6.5 percent in 2027, “close to 7” percent the following year and approach 8 percent in 2029.
Read also: Pushing rupiah to 15,000 per dollar ‘not that difficult’, says Purbaya
Despite the improvement, last year’s GDP growth missed the 5.2 percent target set in the 2025 State Budget Law, as well as the 5.3 percent target set by the National Development Planning Agency (Bappenas).
