headline

Economic Growth In Q1 Only 4.87%, Lowest Since 2021

The Central Statistics Agency (BPS) noted that Indonesia's economic growth in the first quarter of 2025 slowed to 4.87%. This growth was the lowest since the second year of the COVID-19 pandemic or the third quarter of 2021 which reached 3.51%. Head of BPS Amalia Adininggar Widyasanti said that the achievement of economic growth should be appreciated even though it experienced a slowdown. This is because it occurred amid global uncertainty and pressure from the policies of the President of the United States (US) Donald Trump. 

"The Indonesian economy can still grow by 4.87%, this is something we need to appreciate because in the midst of global uncertainty, amid pressure from Trump's policies, geoeconomic and geopolitical factors, Indonesia can still grow by 4.87%," said Amalia in a press conference, Monday (5/5/2025). Based on detikcom's records, the Indonesian economy grew more than 5% after the third quarter of 2021. Growth below 5% after Q3-2021 occurred in Q3-2023 at 4.94%, Q3-2024 at 4.95% and Q1-2025 at 4.87%. 

Compared to several major trading partner countries, Indonesia also experienced pressure in Q1-2025. Such as the Malaysian economy at 4.4%, Singapore at 3.8%, even South Korea experienced a contraction of 0.1% and the US at 0.3%. 

Household Consumption Slows Despite Eid 

Indonesia's economic growth in Q1-2025 was mainly supported by household consumption with a contribution of 54.53% and grew by 4.89%. Amalia said that the growth in household consumption slowed down when compared to Q1-2024 which grew by 4.91%. Although there was an Eid moment, this year there was no election moment that encouraged spending like last year. "If we compare it to conditions without elections, actually in the first quarter of 2025 it is relatively good compared to the first quarter of previous years without elections," said Amalia. 

Based on BPS records, household consumption growth in the first quarter of 2025 was indeed better than the first quarter of 2022 which grew 4.35% and the first quarter of 2023 4.53%. This growth was driven by the Ramadan and Eid al-Fitr moments, where the subcomponents of household consumption that grew high were transportation and communication, as well as restaurants and hotels. Another reason that caused household consumption growth in the first quarter of 2025 to slow down was because the Eid al-Fitr moment fell on March 31, 2025. Thus, the long Eid holiday was not recorded in the same quarter, but in April or the second quarter of 2025. 

"The first day of Eid al-Fitr falls in the first quarter, but D+1 of Eid, D+2 of Eid, the next holiday is not recorded in the first quarter, the long holiday will be recorded in the second quarter of 2025," explained Amalia. In terms of expenditure, economic growth in the first quarter of 2025 is still supported by household consumption with a contribution of 54.53% and growing by 4.89%. Then followed by Gross Fixed Capital Formation (PMTB) which contributed 28.03%, but grew slowly by 2.12%. The component of expenditure that grew high was exports, which grew 6.78% driven by an increase in the value of non-oil and gas exports and foreign tourist visits. On the other hand, government consumption, which contributed 5.88%, experienced a contraction of -1.38%. 

Tag: BPS Donald Trump Economic Growth US