Indonesia's Economic Growth Is Only 4.87 Percent In The First Quarter Of 2025

Economic Growth (Unsplash)

JAKARTA The Central Statistics Agency (BPS) revealed that economic growth in the first quarter of 2025 reached 4.87 percent year on year (yoy).

This growth slowed down 0.98 when compared to the fourth quarter of 2024 which reached 5.02 percent (yoy).

Head of the Central Statistics Agency (BPS), Amalia Adininggar Widyasanti, revealed that Indonesia's economy based on gross domestic product or Indonesia's GDP in the first quarter of 2025 at a current price of IDR 5,665.9 trillion and at a constant price of IDR 3,264.5 trillion.

"So that Indonesia's economic growth in the first quarter of 2025 is 4.87 percent when compared to the first quarter of 2024 or year on year," Amalia said at a press conference, Monday, May 5.

Amalia conveyed that Indonesia's economy in the first quarter of 2025 when compared to the fourth quarter of 2024 or quarterly (quarter to quarter/qtq) was corrected by 0.98 percent.

Previously, based on the consensus on economic growth from the Head of Bank Permata Economist Josua Pardede, it was estimated that Indonesia's economic growth in the first quarter of 2025 was estimated to be at a moderate level of 4.91 percent on an annual basis or year on year (yoy), or weakened from the first quarter of 2024 which was 5.11 percent (yoy).

According to him, this is in line with macroeconomic data, surveys of business actors and consumers, as well as indicators of the real sector that show domestic and external pressure.

Josua explained that household consumption, as the main support for the economy, in the first quarter of 2025, was estimated to grow 4.50 percent (yoy) or slowed down from 4.91 percent in the first quarter of 2024, driven by still maintained consumer optimism as reflected in the March 2025 Consumer Confidence Index (IKK) at 121.1, although it fell compared to February 2025 of 126.4.

"The Current Economic Condition Index (IKE) and the Consumer Expectation Index (IEK) above 100 indicate that people's confidence is still optimistic," he told VOI, May 4.

Meanwhile, PT Bank Mandiri (Persero) Tbk estimates that Indonesia's economic growth in the first quarter of 2025 will grow by 4.91 percent year on year (yoy) or slow down from economic growth in the fourth quarter of 2024 by 5.02 percent (yoy).

Chief Economist of Bank Mandiri Andry Asmoro revealed that there are several factors that caused the slowdown in economic growth in the first quarter of 2025, namely first, household consumption growth is expected to be below 4.9 percent (yoy) in the first quarter of 2025, slowing down from 5.0 percent (yoy) in the fourth quarter of 2024.

"This reflects the public's tendency to carry out spending carefully, with some income allocated for savings just in case," citing a written statement from Bank Mandiri, Sunday, May 4.