ASIATODAY.ID, JAKARTA – Indonesia’s economy expanded by 4.87% in the first quarter of 2025, according to the latest report from Statistics Indonesia (BPS). The country ranks in the middle among Southeast Asia’s key economies, outperforming Malaysia and Singapore but falling behind Vietnam.
BPS Chief Amalia Adininggar Widyasanti reported that Indonesia’s gross domestic product (GDP) stood at IDR 15,665.9 trillion (current prices) or IDR 3,634.5 trillion (constant prices) during January–March 2025. Year-on-year, the economy grew 4.87% compared to Q1 2024, although this marks a slowdown from the 5.11% growth recorded in the same period last year.
“Economic growth in Q1 2025 was still driven by increased consumption during Ramadan and Eid al-Fitr, although not as strongly as the previous year,” Amalia said on Monday, May 5, 2025.
When compared to key trading partners, Indonesia’s 4.87% growth outperformed Malaysia (4.4%), Singapore (3.8%), the United States (2%), and South Korea, which contracted by 0.1%.
However, Indonesia lagged behind Vietnam, which posted a robust 6.9% growth, and China at 5.4%.
Interestingly, most of Indonesia’s major trading partners showed an acceleration in economic growth. China’s economy rose from 5.3% to 5.4%, Malaysia from 4.2% to 4.4%, Singapore from 3.2% to 3.8%, and Vietnam from 6% to 6.9%.
In contrast, the US and South Korea experienced a deceleration. The US economy fell from 2.9% to 2%, while South Korea dropped sharply from 3.3% to just 0.1%.
Global Uncertainty Poses Challenges
It is important to note that the economic performance of Indonesia’s trading partners plays a crucial role in the country’s export demand—especially amid rising global uncertainty driven by reciprocal tariff policies under US President Donald Trump. Weakening economies in key markets could dampen demand for Indonesian exports.
Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that Indonesia’s economy remains resilient despite the slight slowdown in early 2025. He highlighted that Indonesia recorded the second-highest growth rate among G20 countries, trailing only China.
“We are still ahead of Malaysia (4.4%), Singapore (3.8%), and Spain (2.9%). In ASEAN, we are only slightly below Vietnam (6.9%),” Airlangga noted.
He expressed optimism that growth would strengthen in the coming quarters as government budget disbursement picks up.
“We expect momentum to be maintained, with the government budget starting to roll out, ensuring that economic growth remains on track,” he added. (AT Network)
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