August 5, 2025 | 09:44 pm
The Central Statistics Agency (BPS) has announced that Indonesia's economy grew by 5.12% in the second quarter of 2025. In response, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that this growth rate is among the highest in both the ASEAN region and the G20 countries.
According to Airlangga, the 5.12% figure proves that Indonesia's economy remains robust. "In the second semester, our target was 5.2 percent, and what was announced this morning, Alhamdulillah (Praise be to God), we are back on the 5 percent track," Airlangga said at a press conference in his Jakarta office on Tuesday, August 5, 2025.
Airlangga noted that Indonesia's position is second only to China, which recorded a growth rate of 5.2%. Meanwhile, other ASEAN countries like Malaysia and Singapore grew by 4.50% and 4.30%, respectively. This figure is also higher than the United States, which grew by 2.00%.
Previously, BPS Deputy for Balance and Statistical Analysis, Moh. Edy Mahmud, confirmed that Indonesia's GDP at current prices reached Rp5,947 trillion in the second quarter of 2025, while at constant 2010 prices it was Rp3,396.3 trillion.
"So, Indonesia's economic growth in the second quarter of 2025 compared to the second quarter of 2024, or year-on-year, grew by 5.12 percent," Edy said at a press conference on Tuesday, August 5, 2025.
Regarding expenditure, Edy noted that all components experienced positive growth, except for government consumption, which contracted by 0.33%. "The expenditure component contributing the most to GDP is household consumption, with a contribution of 54.25 percent. This component grew by 4.97 percent. This indicates the continued strength of domestic demand," Edy said.
However, Executive Director of the Center of Economic and Law Studies (Celios), Bhima Yudhistira, suggested that the BPS's economic growth data may not reflect the country's actual economic conditions. He pointed out anomalies in the BPS data, specifically regarding the growth of the manufacturing industry.
According to BPS, the manufacturing industry grew by 5.68% annually and contributed 1.13% to overall economic growth.
Meanwhile, Indonesia's manufacturing PMI data contracted below 50 points during the period of April to June 2025. "So, what is the explanation? How can there be a significant increase in mass layoffs in labor-intensive industries, efficiency in the industrial sector, and even production stoppage in the downstream sector, such as nickel smelters?" he said in a written statement on Tuesday, August 5, 2025.
Nailul Huda, Executive Director of Celios Digital Economy, added that another anomaly is household consumption, which only grew by 4.97%.
According to BPS data, household consumption contributed 54.25% to GDP and 2.64% to the overall economic growth. However, according to Nailul, there was no significant event that would have led to such a sharp increase in household consumption.
"The inconsistency between economic growth data and leading indicators personally makes me distrust the data released by BPS," Nailul said. He also requested that BPS provide a detailed explanation of the methodology used, including the indices used to calculate sectoral value-added figures and expenditures.
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