Refuting Economic Weakening Narrative, Indonesia’s Economic Growth is Second Highest in the G-20 Group
Jakarta – The government has firmly denied the narrative of the weakening of the national economy circulating, by presenting concrete data on Indonesia’s economic growth in the first quarter of 2025. The Central Statistics Agency (BPS) noted that the Indonesian economy grew by 4.87 percent annually (year-on-year/yoy). With this figure, Indonesia ranks second highest in economic growth among the G20 countries, only below China which recorded growth of 5.4 percent.
Coordinating Minister for Economic Affairs Airlangga Hartarto assessed this achievement as proof that the Indonesian economy remains resilient despite facing global challenges. “Indonesia’s (economy) grew by 4.87 percent and for the G20 countries, our growth is the second highest below China which grew by 5.4 percent,” said Airlangga. He added that this figure is even higher than a number of other countries such as Malaysia (4.4 percent), Singapore (3.3 percent), and Spain (2.9 percent).
Airlangga also said that this performance was the result of the synergy of various government policies that maintain national economic stability. He is optimistic that in the future, economic growth can be driven even higher. “We will see further developments in the next quarter. Because we see that in the next quarter, it is hoped that the government budget will start running so that the growth momentum can be maintained,” he added.
On the other hand, Minister of State-Owned Enterprises (BUMN) Erick Thohir said that the 4.87 percent economic growth is real evidence of the government’s resilience and success in managing the national economy amidst very complex global pressures. “I think many have predicted that the growth of 4.87 percent would be far below. This means that the 4.87 percent result is good,” said Erick.
Erick also highlighted signs of improvement in the domestic financial sector, including the strengthening rupiah exchange rate and the recovery of the capital market. “Of course, this position is good and if we also see how the rupiah has started to return to a good direction. The stock exchange has also started to bounce back,” he added. According to him, the government will continue to focus on maintaining people’s purchasing power and ensuring that food prices remain stable, as an effort to maintain sustainable growth.
BPS noted that Indonesia’s Gross Domestic Product (GDP) based on current prices reached IDR5,665.9 trillion, while at constant prices (ADHK) it was IDR3,264.5 trillion. Five main business sectors – manufacturing, trade, agriculture, construction, and mining – were the largest contributors to national GDP with a total contribution of 63.96 percent.
The government emphasized that the focus going forward is to maintain growth momentum, strengthen people’s purchasing power, and stimulate strategic sectors that are the driving force of the national economy. This achievement proves that the narrative of economic weakness is baseless and does not reflect the current factual conditions of the Indonesian economy. [^]
