Indonesia GDP Annual Growth Hits 2-Year High

Indonesia’s GDP expanded by 5.12% yoy in Q2 2025, beating expectations of 4.8%, accelerating from a 4.87% gain in Q1.

This marked the fastest pace of expansion since Q2 2023, driven by stronger growth in fixed investment (6.99% vs 2.12% in Q1) and private consumption (4.97% vs 4.95%).

On the external front, export growth accelerated to 10.67% from 6.46%, reflecting a rush by factories to ship goods ahead of the new US tariff deadline in August.

Import growth also soared, rising to 11.65% from 4.17%.

Government spending fell at a slower pace (-0.33% vs -1.37% in Q1), helping to ease downward pressure on growth.

Production-wise, output growth accelerated for manufacturing (5.68% vs 4.55%), real estate (3.71% vs 2.94%), while rebounding for mining (2.03% vs -1.23%).

For 2025, the government has maintained its GDP growth target at 5.2%, despite headwinds from new US tariffs of 19%, which is lower than the 32% tariff threatened in April but higher than prior average rates of less than 10%.