The Central Statistics Agency of Indonesia released the latest data on August 5th. In the second quarter of 2025, this largest economy in Southeast Asia once again demonstrated its astonishing resilience and vitality to the world. The gross domestic product (GDP) grew by 5.12% year-on-year, not only significantly higher than the 4.87% in the first quarter, but also returning to a high growth track of over 5%, exceeding market expectations and injecting a strong dose of confidence into global investors.
1. The growth is steady and the macro fundamentals are as solid as a rock
Data shows that since the fourth quarter of 2021, Indonesia’s economy has maintained a stable growth rate of around 5%, a healthy level. The growth rate of 5.12% in the second quarter of this year marks a further strengthening of economic momentum.
Looking at the half-year data, the GDP in the first half of 2025 grew by 4.99% year-on-year. The total nominal GDP, calculated at the average exchange rate, has exceeded 706.8 billion US dollars, with its volume continuously expanding, demonstrating the stability of its macroeconomy and its strong internal driving force.
2. Five pillar industries are making efforts to build a diversified growth engine
The strong growth of Indonesia’s economy does not rely on a single sector, but is supported by a diversified industrial structure. This quarter, the five pillar industries – manufacturing, agriculture, trade, construction and mining – collectively contributed 63.59% of the national GDP, serving as the “ballast stone” of the economy.
Manufacturing (18.67%) : As the largest industry, it continuously provides the core impetus for the economy.
Agriculture (13.83%) & Trade (13.02%) : The two industries are advancing in parallel, ensuring the stability of domestic demand and the supply chain.
Construction industry (9.48%) & Mining industry (8.59%) : Infrastructure construction and resource exports remain important contributors to economic growth.
3. Core Engine Focus: The economic heart of Java Island
The growth momentum of Indonesia’s economy is highly concentrated in its undisputed economic heart – Java Island.
Data shows that Java Island alone contributes 56.94% of the country’s GDP, accounting for more than half. What is more notable is that its own economic growth rate reached as high as 5.24%, not only surpassing the national average but also demonstrating its powerful leading role as a “growth pole”.
This growth is mainly driven by its mature and developed manufacturing, trade, information and communication industries. Especially the manufacturing core area represented by Central Java, with its complete industrial chain, abundant labor force and superior geographical location, is becoming a key node for attracting global capital.
For any investor hoping to make a presence in Indonesia, Java Island is an unavoidable strategic location and the best entry point to enter the Indonesian market.
4. The “top student” of ASEAN, the “ballast stone” effect of investment is becoming more prominent
Against the backdrop of increasing global economic uncertainty, Indonesia’s outstanding performance has enabled it to maintain a high position among ASEAN countries and become a “stabilizer” for the regional economy. Its growth rate of 5.12% outpaced that of major regional economies such as Malaysia and Singapore.
This fully demonstrates that Indonesia is not only a growth engine in Southeast Asia, but also, with its huge scale and steady growth, is playing an increasingly important role as a “ballast stone” and an investment haven in the global capital market.
The strong GDP data for the second quarter of 2025 clearly conveys a signal: It is the right time to invest in Indonesia.
Whether it is deeply cultivating the mature industrial chain on Java Island or seizing the emerging industrial opportunities on Sulawesi Island, Indonesia offers global investors diversified and high-return investment tracks. Its stable macro environment, clear industrial development blueprint and strong regional growth momentum are jointly building an investment destination that you can trust.
