Indonesia demonstrated economic resilience in the first quarter of 2025, achieving a 4.87% year-on-year GDP growth. Despite global headwinds and evolving trade dynamics, the country continues to strengthen its economic foundation by actively engaging in trade discussions and leveraging key sectors such as agriculture and exports.
While the growth rate marks a slight moderation, economists view it as a stable performance amid challenges, including rising tariffs from major trading partners such as the United States. Jakarta is proactively seeking constructive dialogue with U.S. counterparts to manage the impact of these tariffs and maintain healthy trade flows between both nations.
Chief Economic Minister Airlangga Hartarto highlighted that Indonesia’s performance remains strong compared to other G20 economies. He emphasized that strategic government spending and enhanced trade cooperation will continue to drive momentum in the months ahead.
Indonesia’s trade sector saw positive contributions, particularly from net exports, as imports slowed. The government remains optimistic about opportunities to diversify trade relationships and improve the balance of trade, especially through agricultural exports, which saw a boost from higher rice and corn harvests.
Experts expect the second half of 2025 to bring further improvement as tariff discussions progress and investor sentiment strengthens. With supportive policy measures and a commitment to expanding international trade, Indonesia is well-positioned to navigate current economic transitions and unlock long-term growth.
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