Daftarsbmptn.com – Bank Indonesia (BI), through the Yogyakarta Special Region (DIY) Representative Office, stated that Yogyakarta’s economic growth in the third quarter of 2025 reached 5.40 percent year-on-year (yoy), higher than the national growth of 5.04 percent yoy.
DIY’s Growth Superior, But Moderating
The Head of BI Yogyakarta, Sri Darmadi Sudibyo, stated that the 5.40 percent growth was indeed the highest in Java and exceeded the national average of 5.17 percent for Java and 5.04 percent nationally.
However, this figure moderated slightly compared to the previous quarter in Yogyakarta, which grew 5.49 percent yoy. “Growth has moderated slightly compared to the previous period,” said Sri Darmadi.
Driver Business Sectors
In terms of business fields, three main sectors drive Yogyakarta’s economic growth: manufacturing, construction, and agriculture.
The manufacturing industry grew 5.07 percent year-on-year. The main driver was the food and beverage industry, which was helped by increased tourist visits during school holidays. However, due to fewer holidays and collective leave periods than last year, this sector’s performance was not as strong as in the previous quarter.
Construction recorded growth of 8.77 percent year-on-year, a slight slowdown from 9.38 percent year-on-year in the second quarter. Major projects such as the Yogyakarta-Solo Toll Road, the Yogyakarta-Bawen Toll Road, the Yogyakarta Regional People’s Representative Council (DPRD) building, and school revitalization were the driving forces. Weather factors (the rainy season) were a hindrance.
Agriculture showed a significant surge in performance, growing 6.08 percent year-on-year after a contraction of -0.81 percent year-on-year in the second quarter. Increased food crop production was key.
From the Demand Side: Consumption, Investment, & Government
The increase in economic activity in the Yogyakarta Special Region was not only driven by production but also by demand:
- Household consumption grew 4.29 percent year-on-year, driven by public spending on food, transportation, and recreation during school holidays.
- Gross Fixed Capital Formation (PMTB) which represents investment surged 10.42 percent year-on-year, up from 8.23 percent in the previous quarter. This investment surge is directly related to the acceleration of infrastructure development and additional budget allocations for social programs.
- Government consumption actually slowed, growing only 0.40 percent year-on-year, due to budget efficiency policies at the regional and central levels.
- Yogyakarta’s exports and imports contracted by 0.99 percent and 0.90 percent year-on-year, respectively influenced by a decline in furniture exports of up to 18.53 percent year-on-year.
Outlook & Future Challenges
Sri Darmadi projects that throughout 2025, Yogyakarta’s economic growth will be in the range of 4.8 to 5.6 percent year-on-year. However, he cautioned that various global and domestic challenges must be addressed to ensure quality and sustainable growth.
Several challenges must be considered:
- The risk of weather conditions that could hinder physical development and construction, as evidenced by the slowdown in these sectors.
- Deteriorating export performance, including for furniture products, is holding back contributions from foreign trade.
- Government budget efficiency, while important, if too deep can hinder public consumption and government capital spending, which are key drivers of growth.
- The importance of synergy between stakeholders: regional governments, Bank Indonesia, and the private sector, is crucial for ensuring sustainable and inclusive growth momentum, not just in terms of numbers but also in terms of quality.
Significance for Yogyakarta Special Region & Indonesia
Yogyakarta’s growth exceeding the national average demonstrates that the region has successfully capitalized on local competitive advantages: tourism, the creative industry, increased infrastructure investment, and a rebounding agricultural sector.
This is important because Yogyakarta not only contributes to national growth but also demonstrates that regional economic transformation based on sectoral diversification is possible.
Nationally, this data signals that when regions outside the central government (Jakarta) successfully maintain growth and increase investment and consumption, the Indonesian economy as a whole can be more stable despite facing global challenges.
Conclusion
The 5.40 percent year-on-year (yoy) economic growth of Yogyakarta Special Region (DIY) in the third quarter of 2025 is a commendable achievement, surpassing the national figure of 5.04 percent. Supported by the manufacturing, construction, and agricultural sectors, as well as household consumption and investment, this momentum must be maintained. However, various challenges such as weather, budget efficiency, and export contraction must be anticipated to ensure that this growth is not merely quantitative, but also qualitative and impacts public welfare.
By strengthening synergy between regional governments, Bank Indonesia (BI), and local economic actors, Yogyakarta Special Region (DIY) has the opportunity to become a model region that has successfully mobilized inclusive growth while supporting national economic targets.