Indonesia’s economic growth in Q2 2025 was recorded at 5.12%, up from 4.87% in the previous quarter. This positive growth occurred despite an ongoing wave of layoffs (PHK).
Policy and Program Director at Prasasti Center for Policy Studies, Piter Abdullah, believes the digital economy sector has served as a cushion amid the rise in layoffs.

He explained that laid-off workers are not entirely unemployed, as many have transitioned to working as online motorcycle taxi (ojek online/ojol) drivers. Data from the Nusantara Workers’ Union Confederation (KSPN) shows that from August 2024 to February 2025, layoffs reached 939,038 workers.

“Firstly, layoffs do not mean people simply stop working. Many continue to work, and this is where the digital economy plays its role. We should be grateful for platforms like Gojek, Grab, Maxim, and Indrive, which act as a safety net for those affected by layoffs,” Piter said during a press conference in Central Jakarta, Tuesday (Aug 12, 2025).

He added that the digital economy helps laid-off workers continue to earn income. This, in turn, keeps household consumption stable, which contributed to Indonesia’s economic growth of 5.12% in Q2 2025.

According to the Central Statistics Agency (BPS), household consumption grew 4.97% in Q2 2025, slightly higher than 4.93% in the same period last year. This component made the largest contribution to economic growth during the quarter.

“This means they still earn income and maintain consumption levels. BPS data shows that despite high layoff numbers and other indicators pointing to a slowdown, our consumption growth did not decline,” he explained.

Piter noted that household consumption among middle- to upper-income groups is relatively inelastic due to their stable purchasing power, while lower-income households are much more sensitive to economic fluctuations.

Furthermore, consumption among lower-income groups has been maintained due to the government’s distribution of social assistance (bansos), which Piter considers a crucial safety net for these communities.

He acknowledged that household consumption growth is still not particularly high but sees it as reasonable given Indonesia’s current economic conditions.

“BPS data shows that our consumption growth has remained steady, although not high, as both Q1 and Q2 figures were below 5%. As an economist, I see these numbers as reasonable for our economy. BPS is not exaggerating the consumption figures,” he added.

Piter also highlighted the decline in Indonesia’s manufacturing Purchasing Manager Index (PMI) despite the 5.12% economic growth. Based on S&P Global data, the manufacturing PMI stood at 49.2 in July 2025, 46.9 in June, and 47.4 in May.

He emphasized that PMI is merely a survey and not a direct indicator of incoming investment, adding that Indonesia’s PMI level remains relatively good.

“Many people link PMI with BPS data and question why economic growth remains high even though PMI is falling. It’s important to understand that PMI is a survey about purchasing activity, specifically forward-looking purchases, not past transactions,” Piter explained.