Key facts
- Indonesia's economy grew 5.29% year-on-year in Q2, exceeding the 5.10% forecast.
- GDP grew 5.61% year-on-year in the January-March period.
- Manufacturing, agriculture, and construction expanded in Q2.
- Export growth surged 10.67% year-on-year.
- Household consumption grew 4.97% year-on-year.
- Bank Indonesia cut its benchmark interest rate by 25 basis points to 5.25% in July.
Indonesia's economy expanded 5.29% year-on-year in the second quarter, surpassing the 5.10% forecast in a Reuters poll and marking a slight deceleration from the first quarter's 5.61% growth. The growth was driven by manufacturing, agriculture, and construction, while the mining sector contracted. Export growth surged 10.67% year-on-year, boosted by pre-tariff order front-loading. Household consumption grew 4.97% year-on-year. Bank Indonesia cut its benchmark interest rate by 25 basis points to 5.25% in July to support economic growth. Analysts express caution about sustained momentum in the second half due to weaker global demand and the impact of new US tariffs.