Indonesia’s Q2 growth hits 5.1%, fastest pace since Q2 2023

Published 05/08/2025, 09:48
Indonesia’s Q2 growth hits 5.1%, fastest pace since Q2 2023

Investing.com -- Indonesia’s economy grew at a faster-than-expected pace in the second quarter, marking the quickest expansion since the second quarter of 2023, driven by strong investment and household spending.

Gross domestic product (GDP) accelerated to 5.12% in the April-June period, up from 4.87% in the first quarter, according to data released by the statistics bureau on Tuesday. The figure exceeded economists’ expectations of 4.80% growth.

The robust performance came despite concerns over weakening economic indicators, including declining car sales, softening consumer confidence, and contracting purchasing managers’ index, which had suggested slowing economic activity.

Bank Indonesia, which has implemented four interest rate cuts since September, had forecast economic growth would range between 4.6% and 5.4% for the full year.

Despite the positive second-quarter results, economists indicated that additional support measures might be necessary to maintain growth momentum in the second half of the year.

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