headline

Indonesian Economy Grows 5.12% In Q2, BI Reveals This Projection!

Statistics Indonesia (BPS) data shows that the economy grew by 5.12% (yoy) in the second quarter of 2025, higher than the 4.87% (yoy) growth in the previous quarter. 

Bank Indonesia (BI) commented on the release of the data. From the expenditure side, GDP in the second quarter of 2025 was supported by domestic economic activity and increased export-import performance. 

"Household consumption grew by 4.97% (yoy) in line with increased economic activity and public mobility during the National Religious Holidays (HBKN) and school holidays," said Ramdan Denny Prakoso, Head of the Communication Department of Bank Indonesia (BI), as quoted on Wednesday (August 6, 2025). 

Investment grew by 6.99% (yoy), supported by positive growth in capital investment realization. Meanwhile, government consumption contracted by 0.33% (yoy) in line with the normalization of government spending compared to the high level recorded in 2024 for the election period. Consumption by Nonprofit Institutions Serving Households (LNPRT) grew by 7.82% (yoy). 

Exports grew by 10.67% (yoy), supported by continued positive demand from major trading partners and an increase in service exports in line with the increase in foreign tourist visits. Meanwhile, import growth was driven by domestic demand. 

In terms of Business Sectors (LU), all LUs performed positively. The Manufacturing Industry, Trade, and Information and Communication LUs, the main contributors to growth, also performed well in line with increasing domestic and external demand. 

Meanwhile, spatially, economic growth in the second quarter of 2025 was higher across all regions than in the previous quarter. The highest economic growth was recorded in Java, followed by Sulawesi-Maluku-Papua (Sulampua), Sumatra, Kalimantan, and Bali-Nusa Tenggara (Balinusra). 

"Looking ahead, overall economic growth in 2025 is projected to be in the range of 4.6-5.4%," said Ramdan. 

Tag: Balinusra BPS HBKN Statistics Indonesia