The team of economists at Bank Mandiri revealed that several business sectors contributing significantly to Indonesia's economy are growing at a much slower pace than the overall economic growth rate.

In recent years, they noted that the services sector has played a bigger role in driving Indonesia's economic expansion. However, despite its faster growth, this sector contributes less than 10% to the nation’s Gross Domestic Product (GDP).

Among these sectors are transportation and warehousing, which grew by 13.5% but only contributed 6.2% to GDP; accommodation and food services, which grew by 9.7% with a 2.7% contribution; business services, which recorded 8.6% growth with a 2% contribution; and information and communication, which expanded by 7.7% but contributed only 4.4%.

“The note or challenge here is that these sectors still provide relatively small contributions compared to major sectors such as manufacturing,” said Bank Mandiri Chief Economist Andry Asmoro at the Mandiri Macro and Market Brief 3Q25 Indonesia Economic Outlook event on Thursday (August 28, 2025).

Meanwhile, sectors with substantial contributions to the economy but relatively low growth include manufacturing, which grew by only 4.7% on average in the first half of 2025, yet contributed as much as 18.7% to GDP.

Additionally, agriculture, forestry, and fisheries grew by only 2% while contributing 13.8%, and wholesale and retail trade expanded by 5.1% with a 13.1% share of GDP.

Asmoro projected that if the government seriously focuses on boosting the performance of these three major sectors, Indonesia’s economy could accelerate beyond the current growth pace, which has been around 10% over the past decade.

“Just imagine if the agriculture, forestry, and fisheries sector, which currently grows at only 2%, could increase to 4%, it would certainly have a much greater impact on economic growth,” Asmoro explained.

“I believe this is what we need to push forward, and with the government’s current initiatives, we should be able to restore growth to a stronger trajectory,” he emphasized.