Statistics Indonesia (BPS) announced that Indonesia's economy grew 5.12% year-on-year in Q2 2025, significantly exceeding the 4.80% market consensus and marking the fastest growth pace in two years since Q2 2023, with BPS Deputy for Balance Sheet and Statistical Analysis Edy Mahmud revealing the economy reached IDR 5,947.0 trillion at current prices.
The robust growth was driven by strong performance across multiple sectors, with other services leading at 11.31% growth, followed by corporate services (9.31%), transportation and warehousing (8.52%), and lodging and food services (8.04%), while exports of goods and services surged 10.67% from the expenditure side.
Household consumption, which contributed 54.25% to GDP, grew 4.97% annually and provided crucial stability to domestic demand, supported by state-sponsored consumption incentives and infrastructure project acceleration that boosted economic activity beyond expectations.
The impressive performance represents an acceleration from Q1 2025's 4.87% growth and positions Indonesia's semester 1-2025 growth at 4.99%, with DBS Bank economist Radhika Rao noting the surprise upside was likely due to positive net exports balance supporting overall economic expansion.
Indonesia's Q2 2025 growth demonstrates the economy's resilience amid global challenges, with manufacturing, trade, and tourism sectors showing strong momentum while strategic government investments in infrastructure projects and consumer stimulus measures effectively supported domestic economic activity.
