Current Economic Achievements for Next Year's Performance Foundation

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The following is important information related to the development of the business universe that needs attention today based on the curation of the SUAR Team.

Indonesia's Third Quarter Economy Grows 5.04% as Expected

Indonesia's economy grew 5.04% year-on-year (YoY) in the third quarter of 2025, up 1.43% compared to the growth in the second quarter of 2025 which reached 5.12% YoY. The main growth-supporting components still came from household consumption and gross fixed capital formation (PMTB) or investment. Expectations of a slowdown in annual growth can still be prevented by utilizing the momentum and all available opportunities.
The business world appreciates the achievement of economic growth that has been able to maintain momentum to reach above 5% for two consecutive quarters. In the midst of an increasingly promising recovery momentum, the business world will maintain patience and precision, remain patient waiting for the impact, while guarding policies to be right on target.

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This is the Economic Sector Predicted to Drive Growth in 2026

Towards 2026, business players assess that the direction of Indonesia's economic growth is starting to show signs of recovery despite global challenges. Sectors such as services, manufacturing, and agriculture are expected to be the main drivers of recovery. Collaboration between the government, state-owned enterprises, and the private sector can strengthen investment flows to make Indonesia's economic transformation sustainable.

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Although Still Dominated by Informal Workers, Formal Labor Absorption Increases

The employment rate in the formal sector in August 2025 reached 42.2, an increase compared to February 2025 which amounted to 40.6%. The labor absorption rate in the formal sector in August 2025 was also slightly better than in August 2024, which amounted to 42.05%. Although still dominated by informal workers, formal labor absorption is slowly increasing. This recent development signals an improvement in employment and worker welfare.

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Price is not competitive, biomass entrepreneurs choose to export wood pellets

A number of business players on Wednesday (05/11/2025) admitted that they prefer to export wood pellets and other biomass products due to the lack of competitive domestic prices. This has hampered the development of biomass energy in Indonesia amidst the huge opportunities for biomass exports in various countries such as Japan, South Korea, Italy, and the UK.

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Selected Videos: Indonesia's Economy Grows 5.04 Percent, Exceeds Last Year's Performance

Services Sector Surges in Q3-2025

The Indonesian economy in the third quarter of 2025 showed a positive performance as predicted. On an annual basis (YoY), it grew by 5.04%. This growth occurred in almost all business fields, except for the mining and quarrying sector which experienced the deepest contraction. The highest growth occurred in the services business field group. Education services grew 10.59%, corporate services 9.94%, and other services 9.92%. Meanwhile, the manufacturing industry grew moderately at 5.54%. These four businesses were the driving force of the economy in the third quarter of this year.
The education services business sector, one of the three high-growth service groups, recorded fantastic growth: reaching 10.59% in the third quarter of this year. This compares to only 2.56% in the third quarter of last year. This high growth was partly due to the start of the new school year and an increase in spending on education functions. The high growth in services indicates a shift in demand and significant new growth potential in the services sector. Although the contribution of these sectors to GDP is still relatively small (around 2%), their rapid growth rate provides momentum for recovery and reorientation of investment in human capital and professional services.

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IndoGriTech Expo 2025. This trade show focuses on innovations and advancements in agriculture, agritech, and smart farming. Taking place over four days, November 6-9, 2025, and at Hall 10 - ICE BSD City, the event serves as the premier platform for industry leaders, innovators, and decision-makers to network, collaborate, and forge partnerships that will shape the future of Indonesia's agricultural sector. Attendees will have the opportunity to explore emerging solutions, cutting-edge technologies, and sustainable agriculture practices, as well as meet face-to-face with leading brands and experts to identify business opportunities.

IndoBuildTech Expo. Indonesia's largest exhibition focused on the building, architecture and interiors industry will be held as Part 2 on November 6-9, 2025. Taking place at the Indonesia Convention Exhibition (ICE), BSD City, Indonesia, the event is organized to serve as a collaboration platform for the building materials, architecture, interiors and supporting technology sectors, with the aim of attracting key buyers, manufacturers and visitors from around the world. For visitors, the event offers the opportunity to experience the best product innovations from advanced building materials and interior technologies, discover innovative products from around the world, gain valuable insights from professionals, and expand business networks.