Indonesia’s economy expanded 5.12% year-on-year in Q2 2025—surpassing last year’s same-period growth. Driven by robust service sector momentum and broad-based industry resilience, this steady performance strengthens Indonesia’s position amid regional volatility and global uncertainty.
Key Facts & Background
- GDP Growth (Q2 2025):
- YoY: 5.12% (vs. 5.05% in Q2 2024)
- QtQ: 4.04% compared to Q1 2025
- GDP Value:
- Nominal: Rp 5,947 trillion
- Constant prices: Rp 3,396.3 trillion
- Top-contributing sectors to GDP:
- Manufacturing: 18.67%
- Agriculture: 13.83%
- Trade: 13.02%
- Construction: 9.48%
- Mining: 8.59%
- These five sectors account for 63.59% of GDP
- Fastest-growing sectors (YoY):
- Other services: 11.31% — fueled by increased recreation, holidays, and school breaks
- Corporate services: 9.31% — driven by tourism-related business activity
- Transport & logistics: 8.52% — supported by rising passenger and freight volumes across rail and maritime modes
- Demand side growth (YoY):
- Consumption: 4.97%
- Government spending: -0.33%
- Capital Investment: 6.99%
- Exports and Imports: 10.67% and 11.65%
Strategic Implications
Indonesia’s sustained GDP growth in Q2 2025 reflects a resilient and diversified economic structure. The expansion is not only sectorally broad but also increasingly anchored in domestic consumption and service activities—marking a shift from traditional commodity reliance toward tourism, logistics, and experiential industries.
The 11.31% surge in “other services,” powered by recreational spending and holiday mobility, signals a potent link between seasonal domestic tourism and economic performance. This correlation offers a strategic opportunity: by enhancing infrastructure and regional accessibility, Indonesia can maximize cyclical spending flows and strengthen regional economies.
The robust gains in corporate services and logistics further highlight the multiplier effect of travel and transport ecosystems. As tourism agents, shipping firms, and distribution hubs grow, they stimulate downstream employment and demand—creating ripple effects across urban and rural supply chains.
Given the middle-class demographic’s rising travel engagement, targeted investments in hospitality, intermodal transport, and urban logistics could generate resilient domestic demand. In parallel, public-private partnerships for integrated tourism zones and smart transport corridors can reinforce structural competitiveness.
Indonesia’s manufacturing and trade sectors continue to anchor GDP despite global headwinds—making a strong case for continued industrial upgrading, trade facilitation, and SME modernization. Balancing domestic-led expansion with export agility will be key to sustaining momentum as global uncertainties persist.
Over the same period, demand-side growth in Q2 2025 reflects a strong pivot toward private-sector and external drivers, as household consumption grew 4.97%. The slight contraction in government spending (-0.33%) suggests a more disciplined public outlay, possibly due to budget reallocations or deferred capital expenditure, while the 6.99% rise in investment underscores business confidence and expansion momentum. External trade emerged as a vital growth engine, with exports surging 10.67% and imports 11.65%