Indonesia's gross domestic product (GDP) expanded by a real 5.39% on year in the fourth quarter, sustaining a string of solid quarterly results for the nation's economy stretching back to 2022.

For all of 2025, Indonesia GDP expanded by 5.11% from 2024, added the Badan Pasat Statistik (BPS) on Thursday.

For every year since and including 2022, the nation's GDP has grown by a a little more than 5% on year, generally sustained by rising output in the manufacturing, export, agriculture and construction sectors, and in business and transportation services.

In 2025, the segment of business services grew by 9.93% on year, reported officials.

Despite international tensions, the nation's export grew by 7.03% on year in 2025, while imports rose by 4.77%.

Indonesia's economy looks to carry on; Bank Indonesia Governor Perry Warjiyo in November projected the nation's GDP to expand by 5.33% in 2026.

The central bank outlook is generally in line with other forecasts; in its latest World Economic Outlook, the International Monetary Fund (IMF) predicted Indonesia's economy will expand by 5.1% on year in 2026.

Indonesia's factory sector is also expanding. The nation's manufacturing purchasing managers index (PMI) logged at 52.6 in January, up from 51.2 in December, and striking further above the 50-mark that separates expansion from contraction, reported S&P Global earlier this week.

The room for additional national-government fiscal stimulus in Indonesia 2026 may be limited. The national fiscal deficit will log near 2.9% for 2025, and there is a legal ceiling of 3% on annual deficit spending, reported Fulcrum, a Singapore-based publication devoted to Southeast Asian issues.