Indonesia’s economy may look healthy on the surface, with GDP growing 5.04 percent (year-on-year) in the third quarter of 2025. This growth, however, is still largely driven by household consumption that is expanding slowly, while per-capita GDP remains stuck at around US$4,300 – 4,900. It suggests that growth is occurring, but not the kind that sustainably raises productivity or incomes. This is exactly the condition that risks locking the country into a middle-income trap. To subscribe please click here
