Indonesia’s economy expanded by 5.1% in the second quarter of 2025 — the country’s strongest quarterly performance in the past two years. The growth was driven primarily by rising investment and a rebound in exports.
The result exceeded analysts’ expectations, who had forecast a more modest 4.8% increase due to sluggish credit activity and widespread layoffs in the manufacturing sector.
Among Southeast Asia’s major economies, Indonesia outpaced Malaysia (4.5%), Singapore (4.3%), and Thailand (2.3%) in quarterly GDP growth, trailing only Vietnam, which posted an 8% surge.
The result exceeded analysts’ expectations, who had forecast a more modest 4.8% increase due to sluggish credit activity and widespread layoffs in the manufacturing sector.
Among Southeast Asia’s major economies, Indonesia outpaced Malaysia (4.5%), Singapore (4.3%), and Thailand (2.3%) in quarterly GDP growth, trailing only Vietnam, which posted an 8% surge.
