Bank Indonesia (BI) forecasts national economic growth in 2025 to range between 4.6% and 5.4%. In the second quarter of 2025, this growth has mainly been driven by non-construction investments, particularly in the transportation sector. According to BI Governor Perry Warjiyo, exports performed well due to strong demand for natural resource-based and manufactured goods, though household consumption remained weak, as seen in slowing retail sales. The agriculture sector continued to grow, supported by government programs, while sectors like manufacturing and food services showed weaker performance.
Spatially, the Sulawesi, Maluku, and Papua (Sulampua) regions experienced growth above 5%, while other regions lagged. BI expects improved growth in the second half of 2025, supported by stronger domestic demand and resilient export performance, including benefits from the new U.S. trade agreement. To boost confidence and economic activity, the government and BI are coordinating fiscal and monetary stimulus, including BI rate cuts, liquidity easing, and macroprudential incentives to support priority sector lending.
