Indonesia Q1 GDP Growth Weakest in 3-1/2 Years

2025-05-05 04:15 By Chusnul Chotimah 1 min. read

Indonesia’s economy grew by 4.87% yoy in Q1 of 2025, slightly below expectations of 4.91% and down from a 5.02% expansion in the previous quarter.

This was the slowest pace of growth since Q3 of 2021, weighed down by a decline in government spending (-1.38% vs 4.17% in Q4) due to a tighter budget, alongside softer rises in private consumption (4.89% vs 4.98%) and fixed investment (2.12% vs 5.03%).

On the external front, export growth moderated (6.78% from 7.63%), reflecting subdued global demand.

Import growth also slowed sharply to 3.96% from 10.36%, amid weaker domestic purchasing power.

Production-wise, output moderated for manufacturing (4.55% vs 4.89%), wholesale and retail trade (5.03% vs 5.19%), and real estate (2.94% vs 2.97%), while contracting for mining (-1.23% vs 3.95%).

For 2025, the government has maintained its GDP growth target at 5.2%.

However, Indonesia's Finance Minister recently said that new U.S.

tariffs could reduce GDP growth by 0.3 to 0.5 percentage points.



News Stream
Indonesia Q1 GDP Growth Strongest Since 2022
Indonesia’s GDP expanded 5.61% year-on-year in Q1 2026, accelerating from 5.39% in Q4 and exceeding market expectations of 5.3%. It marked the fastest yearly growth since Q3 2022, boosted by an acceleration in private consumption (5.52% vs 5.11%), amid support measures to boost spending during the festive season. Government expenditure picked up (21.81% vs 4.55%), while fixed investment stayed robust (5.96% vs 6.12%). On the trade front, exports slowed sharply (0.90% vs 3.25%), reflecting growing supply chain disruptions linked to the geopolitical tensions, while imports surged (7.18% vs 3.96%) on solid domestic demand. By sector, activity strengthened in wholesale/retail trade (6.26% vs 6.07%), construction (5.49% vs 3.89%), and accommodation and food services (13.14% vs 7.15%), but eased in manufacturing (5.04% vs 5.40%) and information and communication (7.14% vs 8.09%). The economy expanded 5.11% in 2025, below the government’s 5.2% target, with growth projected at 5.4% this year.
2026-05-05
Indonesia Q4 GDP Growth Highest in Over 3 Years
Indonesia’s GDP advanced 5.39% yoy in Q4 2025, accelerating from 5.04% in Q3 and surpassing market expectations of 5.01%. It was the strongest yearly growth since Q3 2022, boosted by solid private consumption (5.11% vs 4.89% in Q3) on continued government support measures and lower borrowing costs, even as government spending slowed (4.55% vs 5.66%). Also, fixed investment gained traction (6.12% vs 5.04%). However, net trade was less supportive, with export growth sharply easing (3.25% vs 9.14%) while imports picked up (3.96% vs 0.86%). By sector, output quickened in agriculture, forestry and fishing (5.14% vs 4.93%), wholesale/retail trade (6.07% vs 5.46%), transport and warehousing (8.98% vs 8.62%), and finance and insurance (7.92% vs 0.77%). For the full year, GDP rose 5.11%, below the government’s 5.2% target, reflecting the impact of natural disasters in three provinces, though still the strongest annual growth in three years. For 2026, the economy is expected to grow by 5.4%.
2026-02-05
Indonesia Economy Seen Hitting 2025 Growth Target
Indonesia’s economy is expected to have met its 5.2% growth target for 2025 despite flood-related damage late last year, with economic momentum seen strengthening in the fourth quarter, Finance Minister Purbaya Yudhi Sadewa said on Tuesday. Official data showed GDP growth eased to 5.04% year on year in Q3 from 5.12% previously, which had marked the fastest pace since mid-2023. Fourth-quarter figures are scheduled for release next week, on February 5. For this year, the government kept its 2026 growth target unchanged at 5.4%.
2026-01-28