Indonesia's economy accelerated to 5.12% year-on-year growth in Q2 2025, significantly exceeding the 4.80% market consensus and marking the fastest growth since Q2 2023.
Statistics Indonesia (BPS) executive Edy Mahmud announced that the robust performance represents a notable acceleration from 4.87% growth in the previous quarter, with quarter-to-quarter growth reaching 4.04%.
Coordinating Economic Minister Airlangga Hartarto praised the results, stating the GDP growth has "bounced back to 5 percent" while reaffirming the government's full-year target of 5.2% growth.
The strong performance was driven by infrastructure projects and government stimulus measures, with Gross Fixed Capital Formation surging to 6.99% year-on-year from just 2.12% in the first quarter, led by machinery purchases.
However, economists have raised concerns about the data's accuracy, citing discrepancies with other economic indicators including weakening consumer sentiment, manufacturing slowdowns, and declining cement sales that contradict the official statistics.
