Household Consumption Slows in Q3 2025, Govt Eyes Q4 Recovery

JAKARTA – In the third quarter of 2025, Indonesia’s household consumption grew 4.89% year‑on‑year, slower than the 4.91% increase recorded in the same quarter a year earlier. At the same time, Gross Domestic Product (GDP) for Q3 rose 5.04%, a slight deceleration from 4.95% in Q3 2024.

Coordinating Minister for Economic Affairs Airlangga Hartarto said domestic consumption is expected to pick up in the fourth quarter of 2025. He pointed to improving economic activity reflected in higher inflation at the end of Q3, a sales spike, and rising consumer confidence shown by the Purchasing Managers Index (PMI) for manufacturing. He also noted growing demand for gold and jewelry as investment assets.

The government has deployed a series of fiscal stimulus measures to boost household spending, with effects anticipated in Q4 2025. These measures are intended to support the 5.2% annual GDP growth target and stimulate business activity. For taxpayers and enterprises, stronger consumption could translate into higher domestic demand.