To the surprise of many, Indonesia's economy in the second quarter of 2025 grew by 5.12% on an annualized basis. According to the Central Statistics Agency (BPS), this growth was driven by three main components. Namely: exports, consumption of non-profit institutions serving households (LNPRT), and gross fixed capital formation (PMTB).

When broken down, exports of goods and services accelerated by 10.67% in the second quarter of 2025. Followed by the LNPRT component which grew 7.82%. Then, PMTB or physical investment developed 6.99%.

The three main components driving the economy in Q2-2025 were slightly different from those driving the economy in Q1-2025. In Q1-2025, the three components that grew the most were exports of goods and services (6.46%), household consumption (4.95%), and LNPRT consumption (3.07%).

The shift in household consumption as the main component supporting the economy cannot be separated from the weakening purchasing power and changing consumption patterns of the people.

Meanwhile, PMTB grew significantly from 2.12% in the first quarter to 6.99% in the second quarter. This illustrates the stretch of investment driven by increased infrastructure development activities in various regions, both new and continued projects, as well as the procurement of capital goods for production.

Export of goods and services also grew significantly, from 6.46% (quarter 1) to 10.67% (quarter 2). Goods export activities were mainly supported by non-oil and gas exports, which accounted for around 95% of the total export value. The movement of the processing industry sector will further boost exports in the future.