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The central bank of Indonesia or Bank Indonesia noted that Indonesia’s economy in the quarter one (Q1) 2025 grew by 4.87 percent (year on year/yoy), after growing by 5.02 percent (yoy) in the previous quarter.

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Jakarta (Indonesia Window) – Indonesia’s economy in the quarter one (Q1) 2025 grew by 4.87 percent (year on year/yoy), after growing by 5.02 percent (yoy) in the previous quarter, according to data from the Statistics Indonesia as quoted by Bank Indonesia (the central bank).

This development was influenced by domestic economic activities and export performance, Indonesia Window quoted the Executive Director of the central bank, Ramdan Denny Prakoso, as saying on Tuesday.

In the future, economic growth in 2025 is predicted to be slightly below the midpoint of the 4.7-5.5 percent (yoy) range due to the direct and indirect impacts of the United States (US) tariff policy.

On April 2, 2025, the United States (US) President, Donald Trump. officially imposed a reciprocal tariff on Indonesia of 32 percent from the 10 percent tariff base applied by the US to all countries and the current US tariff.

In terms of expenditure, the Gross Domestic Product (GDP) in the first quarter of 2025 was supported by household consumption which grew by 4.89 percent (yoy) in line with increased economic activity and public mobility during the New Year holiday period and the National Religious Holiday of Eid al-Fitr.

Investment grew by 2.12 percent (yoy) in line with the realization of positive investment growth.

Government consumption contracted by 1.38 percent (yoy) in line with the normalization of government spending compared to spending in the first quarter of 2024 which was recorded as high for the implementation of the general elections.

Consumption of Non-Profit Institutions Serving Households grew positively by 3.07 percent (yoy).

Meanwhile, exports grew by 6.78 percent (yoy) supported by demand from major trading partners, as well as service exports that grew positively in line with growth in foreign tourist visits.

In terms of the sector of economic activity, the GDP in the first quarter of 2025 was influenced by the manufacturing industry sector and the trade sector, as well as the transportation and warehousing sector supported by domestic demand during the moments of the Ramadan (Muslim fasting month) and Eid al-Fitr, as well as the increased external sector.

The agriculture sector also grew supported by the rice and corn harvest. Meanwhile, in terms of spatiality, the highest annual economic growth in the first quarter of 2025 was recorded in the provinces of Sulawesi, Maluku, and Papua, followed by those in Java, Sumatra, Kalimantan, Bali and Nusa Tenggara.

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