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View all search resultsGDP target a tall order after growth slowdown
Indonesia’s gross domestic product growth has decelerated in the second quarter, making the government’s target for the full year – a milestone toward reaching President Prabowo Subianto’s goal of 8 percent growth in his tenure – a tall order.
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A passenger train runs on an elevated track in Jakarta's central business district on Aug. 5, 2025. (AFP/Bay Ismoyo)
I
ndonesia’s gross domestic product growth decelerated in the second quarter, making the government’s target for the full year, a milestone toward reaching President Prabowo Subianto’s goal of 8 percent growth in his tenure, a tall order.
Statistics Indonesia (BPS) revealed in a press conference on Wednesday that the GDP growth had slowed down to 5.29 percent year-on-year (yoy) in the second quarter from 5.61 percent in the first.
Finance Minister Purbaya Yudhi Sadewa said in a media briefing later in the day that the figure “was not strong enough” and that the government wanted “faster growth”.
BPS official Edy Mahmud said in the press conference that private “consumption kept growing”, this time at 5.6 percent yoy, which had pushed up the overall growth, since household spending made up over half of the country’s economic output.
Gross fixed capital formation (GFCF), which reflects investment in fixed assets like buildings, machinery and equipment, expanded by 6.87 percent.
Edy said the solid GFCF growth was primarily driven by surging demand for vehicles, which grew by 26 percent yoy in the quarter, thanks largely to increased purchases by businesses.
