Bank Indonesia Maintains 2025 Economic Growth Projection at 4.6–5.4% Amid Strong Q2 Performance
Jakarta, The Gulf Observer: Bank Indonesia (BI) has reaffirmed its projection that Indonesia’s economy will grow between 4.6 and 5.4 percent in 2025, supported by strengthening domestic demand and improving external trade performance.
The projection was reiterated by Ramdan Denny Prakoso, Executive Director of the BI Communications Department, in an official statement issued Tuesday following the release of Indonesia’s second-quarter GDP data by Statistics Indonesia (BPS).
According to BPS, Indonesia’s economy expanded by 5.12 percent year-on-year (YoY) in Q2 2025, accelerating from 4.87 percent in the previous quarter. The growth was driven by sustained domestic economic activities and a rebound in exports and imports.
Key Growth Drivers
On the expenditure side, the country’s gross domestic product (GDP) in Q2 was buoyed by robust household consumption, which rose 4.97 percent YoY, in tandem with increased public mobility during religious holidays and school vacations.
Investment also recorded solid growth, increasing by 6.99 percent YoY, reflecting improved investment realization across all business sectors. Conversely, government consumption contracted by 0.33 percent YoY, attributed to the normalization of state expenditures following elevated government spending in 2024 related to the general elections.
Exports grew 10.67 percent YoY, supported by sustained demand from key trading partners and a rise in service exports, particularly due to a surge in foreign tourist arrivals. Imports also strengthened in line with growing domestic demand.
Regional Economic Performance
Economic growth across all Indonesian regions improved in the second quarter compared to the previous quarter. Java posted the highest growth, followed by Sulawesi-Maluku-Papua (Sulampua), Sumatra, Kalimantan, and Bali-Nusa Tenggara (Balinusra).
BI emphasized that the latest data supports its view that Indonesia’s economy remains on a stable and positive trajectory in 2025, bolstered by resilient domestic consumption, sustained investment activity, and favorable external conditions.
