Indonesia’s Economic Growth Reaches 5.12 Percent in Q2-2025

Jakarta, August 5 — Statistics Indonesia (BPS) today released the official Gross Domestic Product (GDP) figures for the second quarter of 2025. Amidst persistent global uncertainties and evolving geopolitical dynamics, the Indonesian economy has demonstrated resilience, continuing to post solid growth.

Indonesia’s GDP grew by 5.12 percent year-on-year (yoy) in Q2-2025, an improvement from 5.05 percent recorded in the same quarter of the previous year. For comparison, several neighboring countries also recorded positive growth despite pressures from global trade dynamics, including Vietnam (8.0 percent), China (5.2 percent), and Singapore (4.3 percent).

According to Moh. Edy Mahmud, Deputy Chief Statistician for National Accounts and Statistical Analysis at BPS, this quarter’s growth was primarily driven by robust household consumption. This was supported by fiscal stimulus measures, expanded social assistance programs, the disbursement of the 13th-month salary for civil servants, military, and police personnel, as well as the extended national holidays that boosted population mobility.

Several consumption indicators—such as the real retail sales index and import value of consumer goods—continued to show positive trends. Online transactions through e-retail platforms and marketplaces also contributed to the upward momentum. Investment posted a positive trajectory, reflected in both private sector activity and increased public spending on capital goods, along with rising imports of capital goods.

“Furthermore, stable production activities and the impact of timely policy responses have also helped sustain economic performance in the second quarter of 2025,” Edy stated in BPS’s press release on Tuesday (5/8).

From the expenditure side, exports of goods and services surged by 10.67 percent, driven by strong performance in several non-oil and gas commodities, including animal/vegetable fats and oils, iron and steel, electrical machinery and equipment, and motor vehicles and parts. Additionally, the rebound in international tourist arrivals contributed to the rise in service exports.

Gross Fixed Capital Formation (GFCF)—an indicator of investment—registered a robust growth of 6.99 percent, while government consumption expenditure contracted slightly by 0.33 percent.

From the production side, the manufacturing sector grew by 5.68 percent, supported by strong performance in food and beverage, basic metals, and chemical, pharmaceutical, and traditional medicine industries. “This growth in the manufacturing sector was mainly driven by rising domestic and international demand,” Edy explained.

The wholesale and retail trade; repair of motor vehicles and motorcycles sector grew by 5.37 percent, underpinned by increasing domestic production and import volumes aimed at meeting household consumption needs.

The transportation and storage sector posted a growth of 8.52 percent, supported by a rise in the number of rail and sea passengers, as well as an increase in freight volume across all modes of transport. However, air transport recorded a slight contraction of 0.12 percent. Meanwhile, the information and communication sector expanded by 7.92 percent, driven by surging data traffic and a growing volume of electronic transactions.

From a regional perspective, all major islands recorded positive economic growth. Java posted a growth rate of 5.24 percent, and Sulawesi grew by 5.83 percent, both above the national average. Maluku and Papua also continued to expand, recording growth of 3.33 percent, although this reflected a slowdown compared to Q2 of the previous year.