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View all search resultsGDP growth slows to 5.29 in second quarter
Indonesia’s gross domestic product growth has decelerated in the second quarter, making the government’s target for the full year – a milestone toward reaching President Prabowo Subianto’s goal of 8 percent growth in his tenure – a tall order.
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A passenger train runs on an elevated track in Jakarta's central business district on Aug. 5, 2025. (AFP/Bay Ismoyo)
I
ndonesia’s gross domestic product growth decelerated in the second quarter, making the government’s target for the full year, a milestone toward reaching President Prabowo Subianto’s goal of 8 percent growth in his tenure, a tall order.
Statistics Indonesia (BPS) official Edy Mahmud revealed in a press conference on Wednesday that GDP growth slowed down to 5.29 percent year-on-year (yoy) in the second quarter from 5.61 percent in the first.
He said private “consumption kept growing”, this time at 5.6 percent yoy, which pushed up the overall growth, since household spending made up over half of the country’s economic output.
Gross fixed capital formation (GFCF), which reflects investment in fixed assets like buildings, machinery and equipment, expanded by 6.87 percent, which Edy attributed mainly to increasing demand for vehicles, sales of which grew by 26.03 percent yoy in the quarter.
GDP growth of 5.29 percent is a respectable figure when compared against Indonesia’s average over the past two decades, especially with external pressure in mind, but it remains well below the government’s full year target of 6.3 percent set in the 2025-2029 National Medium-Term Development Plan (RPJMN) as a major step on the way to reaching 8 percent by the end of Prabowo’s first term, which was a key campaign promise.
The figure was also below the expectation of Finance Minister Purbaya Yudhi Sadewa, who on Monday revealed that he was hoping for around 5.4 percent and that the government was now projecting between 5.6 and 6 percent growth for the full year.
