Indonesia’s economy is entering a more balanced and industrialising phase, with growth holding steady at around 5% in 2025 and anchored by a large domestic market where household consumption accounts for roughly 55% of GDP. While commodities remain relevant, the economy’s structure has shifted, with industry (40%) and services (45%) now dominating output.

At the same time, external trade is gradually diversifying as non-commodity exports expand, even as resource exports continue to underpin earnings. This transition is being reinforced by rising foreign investment, with inward FDI stock reaching around USD 305 billion and increasingly directed toward manufacturing, metals and downstream processing. Indonesia’s resource base is also being leveraged more strategically, particularly in nickel, where rapid growth in production value reflects a broader push to move up the value chain.

Taken together, Indonesia is evolving from a commodity-dependent exporter into a more complex industrial growth market with expanding domestic demand and strengthening production capabilities.