Indonesia’s economy expanded by 5.12% year-on-year in Q2 2025, beating expectations of 4.8% and accelerating from 4.87% growth in the previous quarter. This marked the fastest pace of expansion since Q2 2023, driven by stronger growth in fixed investment (6.99% vs 2.12% in Q1) and private consumption (4.97% vs 4.95%). On the external front, export growth accelerated to 10.67% from 6.46%, reflecting a rush by factories to ship goods ahead of the new US tariff deadline in August. Import growth also surged, rising to 11.65% from 4.17%. Meanwhile, government spending declined at a slower pace (-0.33% vs -1.37% in Q1), helping to ease downward pressure on growth. Production-wise, output growth accelerated for manufacturing (5.68% vs 4.55%), real estate (3.71% vs 2.94%), while rebounding for mining (2.03% vs -1.23%). For 2025, the government has maintained its GDP growth target at 5.2%, despite headwinds from the new US tariffs, including a 19% levy imposed on Indonesian goods.