Jakarta. Indonesia’s economy expanded by 5.12 percent in the second quarter of 2025, outperforming several major Southeast Asian economies, including Malaysia, Singapore, and Thailand, according to official figures released on Tuesday.

The data from the Central Statistics Agency (BPS) marked the country’s strongest quarterly growth in two years, beating all market expectations and reinforcing the nation’s resilience amid regional economic uncertainty.

By comparison, Malaysia’s economy grew by 4.5 percent in the same quarter, based on its advance estimate. Singapore posted 4.3 percent growth, while Thailand is projected to have grown by just 2.3 percent, according to estimates from the Bank of Thailand.

However, Indonesia's growth was still outpaced by Vietnam and likely the Philippines. Vietnam reported an impressive 7.96 percent expansion in the second quarter -- its fastest since Q3 2023 -- up from 6.93 percent in the previous quarter. The Philippines is scheduled to release its Q2 figures on August 7, with consensus forecasts pointing to 5.5 percent growth.

Indonesia’s robust performance was driven by positive growth across all industrial sectors, according to BPS. The largest contributors to gross domestic product were manufacturing, agriculture, trade, and mining, which collectively accounted for 63.59 percent of GDP.

The strong data sent a positive signal to financial markets. The benchmark Jakarta Composite Index (JCI) rallied into positive territory, reaching an intraday high of 7,541.35, while the rupiah strengthened slightly by 0.03 percent to Rp 16,385 per US dollar.