Indonesia’s economic growth in Q1-2025 reached 4.87% year-on-year—slightly below the 5% target—but delivered a surprising positive development through the agricultural sector, which grew by 10.45%. The Ministry of Finance highlighted this surge as historic, crediting it to regulatory reforms led by President Prabowo Subianto, who streamlined 145 agricultural policies into a single Presidential Regulation. This major simplification particularly improved fertilizer distribution, reducing bureaucracy and increasing efficiency in farming operations. Previously, the agriculture sector often saw low or even negative growth, leading to frequent rice and corn imports.
According to Statistics Indonesia (BPS), the agricultural sector contributed the highest share to Q1-2025 growth at 1.11%, followed by manufacturing (0.93%), trade (0.66%), and ICT (0.53%). The jump in agricultural performance was driven by a successful harvest season and increased domestic demand. Officials emphasized that this momentum could strengthen national food security and improve long-term economic stability. The transformation of agricultural productivity through policy reform is now seen as a key pillar in Indonesia’s broader economic resilience.
