The ministry's Director General of Economic and Fiscal Strategies, Febrio Kacaribu, explained that Indonesia closed the year 2025 with expansive manufacturing activities, controlled inflation, and a continued surplus in the trade balance.
"Those are key factors to drive a stronger economic growth in 2026," he said in a written statement on Tuesday.
Indonesia’s Manufacturing Purchasing Managers' Index (PMI) stood at 51.2 in December 2025, marking five consecutive months of expansion.
This positive performance was driven by robust domestic demand, employment growth, and increased raw material purchasing activity.
Furthermore, business optimism has also strengthened, reaching a three-month high and reflecting strong confidence in the manufacturing sector's outlook.
In addition, manufacturing activity in Indonesia’s major partner countries generally remained in an expansion zone, providing a positive signal for export demand.
Meanwhile, the trade balance continued its surplus trend, recording a value of US$2.66 billion in November 2025.
Cumulatively, the surplus from January to November 2025 reached US$38.54 billion, an increase of US$9.3 billion compared to the same period in 2024.
"Going forward, we will continue to bolster the downstreaming of natural resources, strengthen the competitiveness of national exports, and diversify our main trading partners to anticipate global dynamics," he remarked.
Meanwhile, throughout 2025, the inflation rate remained under control at 2.92 percent (year-on-year/yoy).
Weather and distribution disruptions drove volatile food inflation up to 6.21 percent (yoy), largely influenced by commodities such as various chili varieties, rice, and fresh fish.
Administered prices recorded a slight increase to 1.93 percent (yoy), driven by price hikes in non-subsidized gasoline and transportation fares during the Christmas and New Year holiday period.
At the same time, core inflation remained stable at 2.38 percent (yoy), supported by the rising price of gold jewelry.
At the end of 2025, various domestic economic indicators also showed positive growth, such as the Consumer Confidence Index, which strengthened to 124, and the Real Sales Index, which grew by 5.94 percent (yoy) as of November.
The strengthening of economic activity was also reflected by a 6.2 percent increase (yoy) in electricity sales to the business sector, while household and industrial electricity sales grew steadily.
"The government continues its efforts to maintain stability and strengthen economic growth momentum. Fiscal policy is directed toward supporting national development programs to ensure inclusive and sustainable economic growth," Kacaribu said.
Related news: Indonesia's agriculture remains solid amid global turmoil: Minister
Related news: Navigating youth employment challenges in this economy
Related news: Indonesia's solid economic state draws global attention: Minister
Translator: Imamatul Silfia, Raka Adji
Editor: Azis Kurmala
Copyright © ANTARA 2026
