Indonesia’s economy maintained a steady momentum in the third quarter of 2025, expanding 5.04% year-on-year, a slight moderation from the 5.12% recorded in Q2 but still outpacing many Asia-Pacific peers. Statistics Indonesia (BPS) attributes this performance to resilient domestic demand and a rebound in export activity amid ongoing global uncertainty.
Nominal GDP reached IDR 6,060 trillion (USD 362.53 billion), while GDP at constant 2010 prices climbed to IDR 3,444.8 trillion. Quarter-on-quarter, the economy grew 1.43%, signalling stable consumption and improving trade flows as businesses adjust to shifting global conditions.
For investors, these numbers reinforce a broader reality; Indonesia is not only navigating global headwinds, it is emerging stronger and more competitive.
A Balancing Act Between Growth and Stability
Household consumption, long the anchor of Indonesia’s economic engine, grew 4.89%, maintaining its significant share of over 53% of GDP. The slight slowdown from the previous quarter’s 4.97% reflects cautious but sustained spending supported by stable inflation and targeted fiscal intervention.
Government spending also rebounded sharply, expanding 5.49% after earlier contractions in the year.
Investment grew 5.04%, primarily driven by manufacturing, construction, and transportation, although at a slower pace than Q2’s 6.99%.
The standout remains exports, which surged 9.91% year-on-year and 6.77% quarter-on-quarter. Non-oil and gas commodities such as vegetable oil, steel, vehicles, and electrical machinery were key contributors.
“The growth in export value indicates a successful diversification shift into higher-value products,” said BPS Deputy Moh. Edy Mahmud.
Exports now make up 23.64% of GDP, behind only household consumption and gross fixed capital formation.
Sectoral Performance: Manufacturing Dominates, Mining Slows
Manufacturing remains Indonesia’s strongest sector, expanding 5.54% and contributing 1.13% to overall GDP. Industries tied to consumer goods, automotive components, and electronics continue to attract both foreign and domestic investment, reflecting the government’s downstreaming policy.
Mining, however, contracted due to weaker coal demand and operational disruptions, specifically the mudflow incident at Freeport Indonesia’s Grasberg mine. While this created a temporary dip in copper output, analysts remain optimistic about medium-term recovery, especially with ongoing mineral refining and EV supply-chain development.
Retail activity also strengthened:
- +4.7% in July
- +3.5% in August
These gains were supported by IDR 24.44 trillion (USD 1.5 billion) in fiscal stimulus and an additional USD 3 billion prepared for Q4 to bolster household purchasing power.
Moreover, companies accelerated shipments to the United States prior to the implementation of a 19% tariff on August 7, creating a short-term spike in export volumes.
What Does It Mean for Foreign Investment in Indonesia?
For foreign investors, Indonesia’s consistent performance above the 5% mark sends a strong signal of stability and scalability. The government’s continued commitment to streamlining investment processes under the Positive Investment List has opened industries previously restricted to foreign participation.
Foreign Direct Investment (FDI) from January to September reached USD 38.1 billion, up 11% compared to the previous year. Most inflows came from Singapore, China, Japan, and the United States.
Key factors strengthening investor confidence include:
- Predictable macroeconomic stability
- Expanding consumer base of over 280 million people
- Digitalisation of licensing processes
- Infrastructure acceleration in Nusantara (IKN)
- Industrial diversification beyond raw commodities
As Coordinating Minister Airlangga Hartarto stated, “Indonesia has proven its resilience in maintaining 5% growth amid a global slowdown. Domestic fundamentals remain strong, and the investment climate continues to improve.”
For foreign companies setting up a PT PMA, Indonesia remains one of the most advantageous markets in Asia.
Export License in Indonesia: Strengthening Trade Foundations
Businesses intending to export must obtain a valid export license (SIUP) and register via the Online Single Submission, OSS RBA system under the Ministry of Trade.
Key requirements for exporters include:
- SIUP Export License
- Registration as a legal entity, including PT PMA
- Compliance with Customs and Excise documentation
- Accurate HS codes and export declarations
Indonesia’s export composition is shifting toward higher-value goods such as processed minerals, battery components, manufactured steel, and refined agricultural products.
For foreign-owned companies, establishing a PT PMA enables legal export operations. Lets Move Indonesia helps businesses navigate export compliance, prevent shipment delays, and align with Indonesia’s trade regulations.
Business License in Indonesia: Streamlined for the Digital Era
The cornerstone of Indonesia’s licensing ecosystem is the NIB, Business Identification Number. Issued through OSS RBA, the NIB functions as:
- Commercial license
- Importer or exporter identification
- Company tax registration
- Operating permit for certain sectors
Depending on the industry, additional sectoral permits may be required from ministries such as the Ministry of Manpower, Ministry of Tourism, Ministry of Energy, or the Ministry of Investment.
For foreign investors, the PT PMA structure remains the most common route, allowing 100% foreign ownership in many sectors under the Positive Investment List.
Lets Move Indonesia oversees the entire licensing process, from document preparation and notarial filings to OSS registration and regulatory compliance.
Tax Compliance in Indonesia: Essential for Foreign Businesses
Individual Tax Obligations
Foreign nationals staying 183 days or more within a 12-month period are considered tax residents and must report worldwide income. Annual tax filing is due on March 31 each year.
Corporate Tax Obligations
All PT PMA companies must:
- Register for NPWP
- File monthly and annual corporate tax returns
- Pay 22% corporate income tax
- Comply with VAT, withholding tax, and BPJS requirements
Digital systems including e-filing, e-billing, and e-faktur make reporting more efficient while allowing tax authorities to monitor compliance more strictly.
Lets Move Indonesia’s tax advisors help foreign companies structure their reporting correctly, avoid penalties, and maintain full compliance.
Indonesia’s Policy Outlook: A Promising 2025
With cumulative growth of 5.01% from January to September, Indonesia remains on track to reach the year-end target of 5.2%. Bank Indonesia has kept interest rates stable after cutting 150 basis points since September 2024, maintaining supportive financial conditions.
Sectors expected to accelerate in 2026 include:
- Nusantara (IKN) development
- Renewable energy and green manufacturing
- EV battery and mineral downstreaming
- Tourism and hospitality
- Digital economy and data infrastructure
Government stimulus, improved licensing, and greater regulatory transparency indicate an increasingly business-friendly environment.
Answering Your Common Questions About PT PMA Incorporation
For many international investors, Indonesia’s regulatory framework often raises the most common questions. Our new guides provide clear insights into how PT PMA incorporation works and why Indonesia continues to boast strong performance, attract investment, and stand out across Asia. As infrastructure improves and regulatory processes become increasingly streamlined, businesses are seeking better ways to connect with the market’s vast potential.
Lets Move Indonesia supports investors with end-to-end clarity, combining compliance insights, step-by-step guidance, and practical solutions to ensure PT PMA establishment becomes simple, reliable, and aligned with national regulations.
What is a PT PMA Company?
A PT PMA, formally known as PT Penanaman Modal Asing, is a foreign-owned perusahaan that enables international investors to legally conduct business in Indonesia. The establishment of a PT PMA, or Pendirian PT PMA, grants foreign companies full operational rights including licensing, hiring, taxation, and export or import activities, making it the primary structure for long-term operations.
How to Set Up a Business in Indonesia
- Select your business structure, such as PT PMA or PT Local.
- Secure your company name and prepare the Deed of Establishment with a notary.
- Register through OSS RBA to obtain your NIB and required permits.
- Open a corporate bank account and meet minimum capital requirements.
- Register for NPWP and obtain sector-specific licenses when necessary.
Lets Move Indonesia ensures the entire process is efficient, accurate, and fully compliant with Indonesian law.
Register Your Business in Indonesia with Lets Move Indonesia
As a subsidiary of the trusted Business consulting & Visa agency in Indonesia, LMI Consultancy, Lets Move Indonesia is an ideal partner for establishing your business presence through PT PMA, expanding regionally, setting up export operations, or relocating teams. We provide:
- Company Establishment Services
- Visa and work permit processing
- Licensing and OSS registration
- Tax advisory and ongoing compliance support
With thousands of clients served, Lets Move Indonesia is respected as one of Indonesia’s most trusted business and immigration consultancies, committed to transparency, efficiency, and professional service.
