Paramadina's Turn To Ask The Truth Of 5.12 Percent Economic Growth Data Released By BPS

Illustration of money (BRI)

JAKARTA - Paramadina University questioned the truth of Indonesia's economic growth rate in the second quarter of 2025 released by the Central Statistics Agency (BPS) at 5.12 percent on an annual basis or year on year (yoy).

Paramadina assessed that the data did not fully reflect the real conditions of the economy, in the midst of weak purchasing power of the community, stagnation of household consumption, pessimism of producers to increasing layoffs (PHK) in various industrial sectors.

"Many people do not believe it and this has the potential to roll into wild balls that damage the credibility of BPS," Paramadina wrote in her official statement, Saturday, August 9.

Therefore, Paramadina asked BPS to explain in detail the methodology and assumptions of calculating gross domestic product (GDP), including data sources, sector boboting and estimation methods.

The private university also urges an explanation of the gap between economic growth data and sectoral indicators that show a slowdown.

In addition, BPS is asked to emphasize its commitment to maintain full independence from pressure or intervention from any party, so that data remains a reflection of economic reality and not a political legitimacy tool.

"If the data released is not in line with the reality on the ground, the national economic policy will be in the wrong direction," explained Paramadina.

According to Paramadina, data revision is a natural thing and part of the academic process. On the other hand, closing yourself will make statistics shift from academic to political areas, which risk eroding BPS credibility.

Furthermore, Paramadina also invited economists, scientists and academics to monitor the quality of national statistical data. Given, this is an important foothold towards an advanced and prosperous Indonesia.

"We really hope that BPS can respond to various inputs with a positive attitude, openness, honesty and courage to make the necessary improvements," he concluded.

Previously, the Center of Economic and Law Studies (Celios) as an independent research institute also responded to data irregularities released by BPS.

Celios even sent an investigation request letter to the UN Statistics Agency, namely the United Nations Statistics Division (UNSD) and the United Nations Statistical Commission.

Executive Director of Celios Bhima Yudhistira stated that the initiation carried out by her party was an effort to maintain the credibility of BPS data so far used for various studies by academic institutions, banking analysts, the business world, including MSMEs and the general public.

"The letter sent to the United Nations contains a request to review economic growth data in the second quarter of 2025 of 5.12 percent year on year. We are trying to review all the indicators submitted by BPS and find the manufacturing industry to grow high, even though the Manufacturing PMI recorded contractions in the same period. The manufacturing portion of GDP is also low, namely 18.67 percent compared to the first quarter of 2025 of 19.25 percent, meaning that premature deindustrialization continues to occur," he said in his statement, Friday, August 8.

In addition, he conveyed that the mass layoff data (PHK) showed an increase and the labor-intensive industry was increasingly depressed due to the increase in various costs.

"So, what is the basis for the manufacturing industry to grow 5.68 percent yoy? Non-synchronous data, of course, must be answered in transparency," he said.

Meanwhile, Fiscal Policy Director Celios Media Wahyudi Askar added, if there is institutional pressure or intervention in data preparation by BPS, it is against the Fundamental Principles of Official Statistics adopted by the UN Statistics Commission.

The media assessed that credible data is not just a technical issue, but concerns Indonesia's international credibility and has a direct impact on people's welfare.

According to him, inaccuracy of economic data, especially if economic growth is exaggerated, risks misleading the direction of policy making.

"Imagine that with inaccurate data, the government can mistakenly postpone the stimulus, subsidies or social protection because it considers the economy to be fine. Business actors, be it big and MSMEs, investors and the public will definitely be confused and affected by negative impacts," he explained.