Statistics Indonesia (BPS) has reported that Indonesia's economy grew by 5.12 percent year-on-year (YoY) in the second quarter of 2025, mainly supported by household consumption and gross fixed capital formation (GFCF).

BPS Deputy for Macroeconomic Statistics, Moh Edy Mahmud, said that household consumption remained the largest contributor to Gross Domestic Product (GDP), accounting for 54.25 percent of the national economy.

This component was also the primary driver of GDP growth, contributing 2.64 percentage points out of the total 5.12 percent growth.

“Household consumption continued to grow in line with rising spending on basic needs and increased public mobility. Demand for food ingredients and prepared foods rose due to tourism activity during periods of religious and school holidays,"” Edy told a press conference in Jakarta on Tuesday, August 5, 2025.

He noted that seasonal events such as Idul Fitri, Vesakh Day, Ascension of Christ, Idul Adha, and school holidays boosted consumption, especially in the transportation and restaurant sectors.

In addition to household spending, GFCF contributed 2.06 percentage points to growth and accounted for 27.83 percent of GDP.

This investment component grew by 6.99 percent YoY, supported by a rebound in investment activity, particularly in the construction sector. Meanwhile, government consumption contributed 0.22 percentage points to overall economic growth.

On the trade side, exports and imports recorded the highest growth, at 10.67 percent and 11.65 percent respectively. Export growth was supported by increased non-oil and gas shipments and a surge in foreign tourist arrivals, while import growth was driven by strong demand for capital goods and raw materials, both in terms of value and volume.

From the production side, the manufacturing sector was the biggest contributor to GDP growth at 1.13 percentage points, followed by trade (0.70 points), information and communication (0.53 points), and construction (0.47 points).

Structurally, the top five sectors by share of GDP were manufacturing 18.67 percent, agriculture 13.83 percent, trade 13.02 percent, construction 9.48 percent, and mining 8.59 percent.

In terms of sectoral growth, the highest YoY growth was seen in other services 11.31 percent, business services 9.31 percent, transportation and warehousing 8.52 percent. These reflect increased economic activity among the public.

Java continued to dominate spatially, contributing 56.94 percent of national GDP and growing 5.24 percent YoY, affirming its role as the core of Indonesia’s economic activity.

Indonesia’s GDP at current prices (nominal) in Q2 2025 reached Rp5.95 quadrillion (US$383.87 billion) while GDP at constant prices (real) stood at Rp3.39 quadrillion (US$218.71 billion).

Compared to the previous quarter (quarter-to-quarter/q-t-q), the economy expanded by 4.04 percent. “To summarize, Indonesia's economy grew by 5.12 percent YoY in the second quarter of 2025 compared to Q2 2024, and by 4.04 percent q-t-q from Q1 2025,” Edy concluded.