Data from Statistics Indonesia (BPS) released on Tuesday showed that Indonesia's economy grew by 5.12 percent year-on-year (YoY) in the second quarter of 2025, up from 4.87 percent in the previous quarter.
"Overall economic growth in 2025 is projected to be in the range of 4.6-5.4 percent," Executive Director of the BI Communications Department Ramdan Denny Prakoso noted in a statement in Jakarta on Tuesday.
In terms of expenditure, the gross domestic product (GDP) in the second quarter of 2025 was supported by domestic economic activities alongside higher export and import performance.
Household consumption grew 4.97 percent YoY in line with increased economic activities and public mobility during religious national holidays and school holidays.
Furthermore, investment grew 6.99 percent YoY, driven by improved investment realization, with all business sectors also showing positive performance.
Meanwhile, government consumption contracted by 0.33 percent YoY in line with the normalization of government spending compared to the high level recorded in 2024 due to the general elections.
Indonesia's exports grew by 10.67 percent YoY, supported by continued positive demand from major trading partners and an increase in service exports in line with rising foreign tourist arrivals. In addition, import growth was driven by domestic demand.
In all regions, economic growth in the second quarter was recorded to be higher compared to the previous quarter, with Java registering the highest economic growth among all, followed by Sulawesi-Maluku-Papua (Sulampua), Sumatra, Kalimantan, and Bali-Nusa Tenggara (Balinusra).
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Translator: Rizka Khaerunnisa, Raka Adji
Editor: Primayanti
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