Indonesia’s economy expanded by 5.1% in the second quarter of 2025, marking the fastest quarterly growth the country has seen in the past two years. Key drivers behind this surge were increased investments and a robust export performance.

The results exceeded analysts’ forecasts, which had predicted a 4.8% growth due to weak lending activity and widespread layoffs in the manufacturing sector.

On a quarterly basis, Indonesia’s economic growth outpaces most Southeast Asian neighbors, including Malaysia (4.5%), Singapore (4.3%), and Thailand (2.3%), trailing only behind Vietnam, which posted 8%.