BPS Reveals Indonesia's Economic Growth In The Second Quarter Of 2025 Driven By Infrastructure Projects

JAKARTA - The Central Statistics Agency (BPS) revealed that Indonesia's economic growth surge of 5.12 percent (yoy) in the second quarter of 2025 was driven by the acceleration of investment, especially through various strategic infrastructure projects such as the program of 3 million houses and the construction of sea embankments.

BPS Deputy for Balance and Statistics Analysis Moh Edy Mahmud explained that Gross Fixed Capital Formation (PMTB) grew significantly from 2.12 percent in the first quarter to 6.99 percent in the second quarter of 2025 which was driven by increased investment from the government and private sectors, especially in infrastructure projects.

"There are several driving projects, including the construction of several toll roads. There is the Kuala Tanjung-Tebing Tinggi-Parapat Section IV section section. In Jakarta, there is Japek (Jakarta-Cikampek) South II Package II A, including the national project program of 3 million houses, MRT Phase 2A DKI Jakarta, MRT Bali, Sea Embankment Phase C DKI Jakarta, and Samarinda Tunnel. These are several government and private projects that are the drivers (driven economic growth) which are large," he said at the Press Conference, Tuesday, August 5th.

He said that PMTB was the second largest component in the growth of Gross Domestic Product (GDP) based on expenditure in the second quarter of 2025, with a contribution of 27.83 percent, only losing to household consumption which reached 54.25 percent. In fact, from the total economic growth of 5.12 percent in the second quarter, PMTB's contribution reached 2.06 percent.

Edy added that PMTB grew driven by private and government investments, where government capital expenditures in the second quarter of 2025 grew by 30.37 percent (yoy), especially in the engine and equipment sector, which was also seen from the growth in imports of machine capital goods by 28.16 percent (yoy).

In addition, he said PMTB growth in the second quarter of 2025 was the highest since the second quarter of 2021, which at that time grew 7.52 percent.

In terms of region, Edy stated that the islands of Java and Sumatra contributed 56.94 percent and 22.20 percent of national gross domestic product (GDP) in the second quarter of 2025, respectively.

"Spatially, the economy grows throughout the region. The Sumatra and Java regions show strong economic growth in the second quarter of 2025 compared to the second quarter of 2024," he added.

Next, the island of Kalimantan was 8.09 percent, Sulawesi was 7.21 percent, Bali and Nusa Tenggara was 2.83 percent, and Maluku and Papua was 2.73 percent of gross domestic product.

He conveyed that the manufacturing, trade, agriculture, and information and communication sectors are the main pillars of driving the national economy.

Edy added that the island of Java recorded economic growth of 5.24 percent spatially, making it one of the areas with the highest growth, only slightly below the island of Sulawesi, which grew by 5.83 percent.

Meanwhile, these two regions experienced a significant economic increase, especially due to the rise of the manufacturing sector.

Furthermore, the island with the next highest growth was Sumatra Island at 4.96 percent, Kalimantan Island at 4.95 percent, Bali and Nusa Tenggara at 3.73 percent, and Maluku and Papua islands at 3.33 percent.

Overall, based on gross domestic product or GDP Indonesia in the second quarter of 2025 at current prices (ADHB) of IDR 5,947.0 trillion and on the basis of constant prices (ADHK) it reached IDR 3,396.3 trillion.

"So that Indonesia's growth in the second quarter of 2025 when compared to the second quarter of 2024 or yoy grew by 5.12 percent. When compared to the first quarter of 2025 or quarter to quarter (qtq) it grew by 4.04 percent," he said.

Thus, Indonesia's cumulative economic growth in the first semester of 2025 reached 4.99 percent.

This achievement shows an increase compared to the first quarter of 2025 which only grew 4.87 percent (yoy), and better than the second quarter of 2024 which grew 5.05 percent.