Image: Sekretariat Negara X@KemensetnegRI
By Open Chronicle Staff with Agencies
February 12, 2026
JAKARTA, Indonesia – Indonesia’s economy has reached a significant milestone, recording a 5.39 percent growth rate in the final quarter of 2025. This performance makes Indonesia the fastest-growing economy among G20 nations, a feat lauded by the country’s top economic officials.
Coordinating Minister for Economic Affairs Airlangga Hartarto announced the figures on Wednesday following a high-level meeting with President Prabowo Subianto. “This is the highest among the G20 countries,” Hartarto stated, noting that the full-year growth for 2025 stood at a robust 5.11 percent.
Broad-Based Economic Vitality
The surge is attributed to a combination of strong domestic consumption and a resilient manufacturing sector. Key indicators highlighting this momentum include:
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Manufacturing Expansion: The manufacturing index remains in the growth zone at 52.6.
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Consumer Confidence: The Consumer Confidence Index (CCI) jumped to 127 in January 2026, up from 123.5 in December.
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Retail Resilience: Real sales grew by 7.9 percent annually, a sharp increase from the previous month’s 3.5 percent.
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Investment Inflow: Total direct investment (Foreign and Domestic) reached Rp1,931.2 trillion (approx. US$111.7 billion).
Indonesia also celebrated its 68th consecutive month of trade surplus, with December 2025 closing at US$2.51 billion. Foreign exchange reserves remain healthy at US$154.6 billion, providing a strong buffer against global volatility.
Managing the “Moody’s” Headwind
Despite the glowing domestic figures, the government is navigating cautious signals from international markets. Rating agency Moody’s recently maintained Indonesia’s sovereign credit rating at Baa2 but shifted its outlook from “stable” to “negative.” This change was mirrored for five major national banks, including Bank Mandiri and BCA.
Minister Hartarto acknowledged the outlook, stating that the government is already anticipating the shift with targeted policy measures. He emphasized that Indonesia’s investment-grade status remains intact and that credit growth continues at a healthy 9.69 percent.
A New Era of Economic Diplomacy
The strong growth figures coincide with President Prabowo’s “Indonesia Incorporated” initiative, which seeks to rally major tycoons and international investors behind national infrastructure and green economy projects. With the IMF recently praising Indonesia’s fiscal management, the archipelago is positioning itself as a primary engine of growth in Southeast Asia heading into 2026.