August 5, 2025 | 05:24 pm
TEMPO.CO, Jakarta - The Central Statistics Agency (BPS) announced that Indonesia's household consumption grew by 4.97% year-on-year in the second quarter of 2025. The Deputy of Balance and Statistics Analysis at BPS, Moh. Edy Mahmud, noted that this consumption component contributed 54.25% to the nation's Gross Domestic Product (GDP) and accounted for 2.64 percent of the total economic growth of 5.12% for the quarter.
"This indicates the strength of domestic demand," Edy said during a press conference on Tuesday, August 5, 2025, as broadcast live on the BPS YouTube channel.
In addition to household spending, another significant contributor to the GDP was Gross Fixed Capital Formation (GFCF), which saw a 6.99% annual increase. GFCF made up 27.83% of the GDP and contributed 2.06 percentage points to the overall economic growth.
Edy reported that all expenditure components showed positive growth, with the exception of government consumption, which contracted by 0.33% annually. Consumption by non-profit institutions serving households grew by 7.82%, while exports of goods and services increased by 10.76%. Imports of goods and services, which are subtracted from the GDP calculation, grew by 11.65%.
Elaborating on the rise in household consumption, Edy explained that a key factor was the increased spending on primary needs and greater mobility. "The rising primary needs for various activities, driven by holidays and religious festivities, led to an increase in demand for food and ready-to-eat meals due to tourism during the holiday period," he said.
This was supported by a recorded 25.93% annual increase in domestic tourism, with 105.12 million trips taken in June 2025 alone.
Despite the official figures, Director of the Center of Economic and Law Studies (Celios), Nailul Huda, expressed skepticism, calling the data "full of anomalies."
He specifically questioned the reported increase in household consumption, which was 4.95% in the first quarter, while economic growth was only 4.87%.
"There was no specific event that could have caused such a sharp increase in household consumption," he argued. Huda suggested that BPS should provide a more detailed explanation of its methodology, including the indices used to calculate sectoral gross value added and expenditures.
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