Wednesday, 07 May 2025 11:52

Manufacturing Industry Becomes the Largest Contributor to Economic Growth

During a hybrid press conference at the BPS office in Jakarta on Monday (5/5/2025), Amalia Adininggar Widyasanti highlighted the strong performance of the manufacturing sector in Q1 2025. The food and beverage industry grew by 6.04%, driven by increased demand during Ramadan and Eid, along with higher activity in rice milling and polishing. The basic metals industry surged by 14.47% due to rising export demand for iron and steel. The leather and footwear industry also recorded 6.95% growth, supported by strong domestic demand during festive periods and an increase in exports.


Other sectors also contributed significantly to the economy. Trade grew by 5.03% and accounted for 13.22% of Q1 2025 economic growth, while agriculture posted the highest growth at 10.52%, contributing 12.66%, driven by major harvests of rice and corn (up 42.26%) and strong livestock demand (up 8.83%). The transportation and warehousing sector rose by 9.01%, reflecting increased mobility during national holidays like New Year, Nyepi, and Eid, especially in logistics and courier services. The accommodation and food service sector grew 5.75%, though accommodation slightly contracted by 0.48% due to lower occupancy rates. Overall, Indonesia’s economy grew by 4.87% in Q1 2025, with a nominal GDP of Rp 5,695.9 trillion and a constant-price GDP of Rp 3,264.5 trillion, although it contracted by 0.98% compared to Q4 2024.

Source:
https://investor.id/macroeconomy/396612/industri-pengolahan-jadi-kontributor-terbesar-pertumbuhan-ekonomi

 

 

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