Indonesia's economy grows 4.87 pct in Q1

Xinhua
06 May 2025, 07:45 GMT+10

A pedestrian walks past a construction site in Jakarta, Indonesia, May 5, 2025. (Xinhua/Zulkarnain)

JAKARTA, May 6 (Xinhua) -- Indonesia posted an economic growth rate of 4.87 percent year-on-year in the first quarter of 2025, according to data released by the Central Statistics Agency (BPS) on Monday.

At a press conference in Jakarta, BPS Chief Amalia Adininggar Widyasanti said the country's gross domestic product (GDP) reached 5,665.9 trillion rupiahs (340 billion U.S. dollars) at current prices and 3,264.5 trillion rupiahs (200 billion dollars) at constant 2010 prices in the first quarter of 2025.

From the production side, the processing manufacturing sector emerged as the largest contributor to GDP, growing by 4.55 percent and contributing 19.25 percent to the national economy.

Vehicles run on Sudirman street in Jakarta, Indonesia, May 5, 2025. (Xinhua/Zulkarnain)

She explained that the sector's performance was strongly supported by the food and beverage industry, which expanded by 6.04 percent. This growth aligned with seasonal demand during the Islamic holy month of Ramadan and Eid al-Fitr, as well as increased activity in the rice milling and polishing industry.

Meanwhile, the base metal manufacturing industry experienced significant growth of 14.47 percent, in line with rising external demand. "The leather goods and footwear industry grew by 6.95 percent, supported by increased domestic demand during Ramadan and Eid al-Fitr as well as improved export performance," she added.

Despite the year-on-year growth, the economy contracted by 0.98 percent on a quarterly basis.

Spatially, Java Island continued to dominate Indonesia's economic structure, contributing 57.43 percent to the national GDP and recording a growth rate of 4.99 percent year-on-year in the first quarter.