Indonesia's economy expanded by 4.87% year-on-year in the first quarter of 2025, marking the second-highest growth rate among G20 nations, trailing only China's 5.4%, as reported by Statistics Indonesia (BPS) .
This growth was primarily driven by a robust 10.52% increase in the agriculture sector, notably in rice and maize production, alongside a 6.78% rise in exports of goods and services, particularly in non-oil commodities and tourism .
Despite these gains, the economy experienced a quarter-on-quarter contraction of 0.98%, attributed to seasonal factors and a significant 39.89% decrease in government consumption following elevated spending during the previous election cycle .
Bank Indonesia has responded by implementing measures to balance economic growth with price and currency stability, including interest rate adjustments and liquidity expansion through open market operations .
Looking ahead, the government has set a GDP growth target of 5.2% for 2025 and aims for a range of 5.8% to 6.3% in 2026, focusing on strengthening domestic demand and enhancing investment to sustain economic momentum.
