Indonesia's economy shows resilience amid global headwinds: Expert

Jakarta (ANTARA) - Indonesia’s year-on-year (yoy) economic growth of 4.87 percent in the first quarter of 2025 reflects the country's economic resilience despite a global economic slowdown, Economist Fakhrul Fulvian stated.

“This growth performance is great, considering the global economic pressures, where many of Indonesia’s trading partners are experiencing economic slowdowns, such as the United States, which recorded a negative growth of 0.3 percent, and Germany, with only 0.2 percent yoy,” he remarked here on Monday.

According to data released by Statistics Indonesia (BPS) on Monday, household consumption remained the main driver of economic growth, expanding by 4.89 percent.

Meanwhile, government spending contracted by 1.38 percent due to fiscal normalization following the 2024 General Elections.

“This also signifies that after the successful election year, the government is returning to its fiscal policy continuity. Slowly but surely, the engines of the people’s economy and the private sector will begin to move again,” he remarked.

He emphasized that Indonesia should transform its fiscal strength as a foundation for accelerating future economic growth.

By sector, agriculture recorded the fastest growth, expanding by 10.52 percent and contributing 1.1 percentage points to overall economic growth, driven by the harvest season and government efforts to boost food security.

“This sector's strength is vital for Indonesia amid ongoing global uncertainty. In the future, policies such as the Free Nutritious Meals program will serve as a key driver for the agricultural sector,” he explained.

The manufacturing sector posted strong growth of 4.55 percent yoy, contributing 0.93 percentage points to GDP, followed by trade, which expanded by 5.03 percent and contributed 0.66 percentage points.

The information and communication sector increased by 7.72 percent, contributing 0.53 percentage points.

Looking forward, government spending and national strategic programs in the next quarter are expected to support growth and serve as buffers for Indonesia's economy amid global turbulence and trade wars.