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View all search resultsGDP up 5.12% on govt projects, consumer stimulus
Indonesia’s economic growth has far outstripped forecasts thanks to infrastructure projects getting pushed ahead and state-sponsored consumption incentives.
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All too familiar: Vehicles are stuck in traffic on Nov. 13, 2024, during the evening rush hour in Jakarta. Most of Jakarta's workers reside on the outskirts of the city. (AFP/Bay Ismoyo)
I
ndonesia’s economic growth has far outstripped forecasts thanks to infrastructure projects getting pushed ahead and state-sponsored incentives pushing consumer spending.
Statistics Indonesia (BPS) executive Edy Mahmud revealed in a press conference on Tuesday that gross domestic product (GDP) grew 5.12 percent year-on-year (yoy) in the second quarter, beating the 4.8 percent market consensus.
The figure marks a significant acceleration from 4.87 percent growth registered in the previous quarter and from 5.02 percent in last year’s second quarter.
“Compared to the first quarter of 2025 or quarter-to-quarter, [the GDP] grew by 4.04 percent,” said Edy.
“Thank God, [GDP growth] has bounced back to 5 percent”, Coordinating Economic Minister Airlangga Hartarto said in a separate press conference on Tuesday, reiterating the government’s full-year GDP growth target of 5.2 percent.
Gross fixed capital formation (GFCF), which reflects investment in fixed assets like buildings, machinery and equipment, jumped 6.99 percent yoy, with the most significant increase seen in machinery purchases, Edi said.
This represented a significant increase from GFCF growth of 2.12 percent yoy logged in the preceding quarter.
