Finance Minister Sri Mulyani Indrawati has come to the defense of Statistics Indonesia (BPS) against growing skepticism from economists over BPS’s report on Indonesia’s second-quarter economic growth figure of 5.12 percent year-on-year, released earlier this week.
Sri Mulyani underscored the integrity and professionalism of BPS in handling official data, emphasizing that the statistics agency adheres to transparent methodologies and international standards.
“BPS has explained in detail the methodology, data sources, and the data they produce. I believe BPS maintains its integrity,” Sri Mulyani said at the Presidential Palace on Thursday, August 7, 2025.
BPS chief Amalia Adininggar Widyasanti also addressed the controversy, stressing that Indonesia’s statistical bureau applies globally recognized standards in its data processing.
“We already have complete supporting data. Everything has been verified and is solid,” Amalia told reporters, on Thursday, dismissing claims that the data was manipulated or politically influenced.
However, the official reassurances did little to quell criticism from several prominent economists, who have cast doubt on the sharp surge in investment as a key contributor to the robust GDP figure.
Economists’ responses
Among the most vocal critics is Executive Director of the Center of Reform on Economics (CORE) Indonesia, Mohammad Faisal. He questioned the reported 6.99 percent year-on-year increase in investment in Q2 2025 −an unusually large leap from just 2.12 percent in Q1.
“That level of investment is similar to pre-pandemic conditions. At the same time, we’re seeing various investor concerns about policy uncertainty and government effectiveness. So the jump is unexpected,” Faisal said.
Echoing the skepticism, Executive Director of the Center for Economic and Legal Studies (CELIOS), Bhima Yudhistira, accused the government of politicizing economic data to signal early success in meeting President Prabowo Subianto’s ambitious 8 percent GDP growth target by 2029.
“The narrative seems to be built toward fulfilling a political promise, not reflecting economic realities,” Bhima said as quoted by Reuters, on Wednesday.
Meanwhile, Senior economist with the Institute for Development of Economics and Finance (Indef), Tauhid Ahmad, also flagged concerns over the calculation of Gross Fixed Capital Formation or PMTB, which reportedly surged to 7 percent in Q2.
“PMTB covers capital expenditures like machinery, equipment, and buildings,” Tauhid said. “But investment credit growth is currently slowing, both from the public and private sectors. This suggests the reported numbers may not align with actual investment conditions.”
Tauhid said further that indicators, such as sluggish bank lending and declining investment appetite among businesses, further cast doubt on the optimistic official data.
The dispute reflects a growing divide between government data and independent economic assessments. While the Finance Ministry and BPS maintain confidence in their reporting, critics warn that credibility gaps real or perceived could undermine investor trust and policymaking.
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