BI: West Sulawesi economic growth slows to 4.83 percent yoy

Based on a report by Bank Indonesia (BI), the economy of West Sulawesi Province rose 4.83 percent year-on-year (yoy) in the first quarter (Q1) of 2025, down from 6.65 percent yoy in the fourth quarter (Q4) of 2025. BI West Sulawesi Representative Office Head Eka Putra Budi Nugroho noted that the figure is slightly lower than the national average of 4.87 percent yoy.

In terms of growth by economic sector, the construction sector is the main contributor to the province's economic slowdown. The downturn was due to a decrease in the realization of capital expenditures (capex) from both the state and regional budgets that was caused by the Indonesian government budget austerity policy.

Even so, several sectors managed to contribute positively to West Sulawesi's economic growth, such as the manufacturing industry. The sector grew thanks to support from the crude palm oil (CPO) commodity and its derived products, along with the increase in production of oil palm fresh fruit bunches (FFB). 

The agriculture, forestry, and fisheries sector's own contribution to West Sulawesi's economic growth was supported by the production of rice, corn, and several plantation commodities such as palm oil, cocoa, coconut, and patchouli. Moreover, the wholesale and retail trade sector is still growing. However, there is a decline in business acitivities for the mining, water supply, and construction sector.

"The growth rate is being held back by the slowdown in capture fisheries and horticultural crops," explained Eka.

From the expenditure side, the drop in gross fixed capital investment formation, or gross investment, contributed to West Sulawesi's economic growth slowdown. The decline was triggered by low government capex, another impact of the Indonesian government's austerity policy.

However, several factors continue to drive growth from the demand side, including the strengthening household consumption as the people's purchasing power improved during the 2025 Ramadan and Idul Fitri holiday period. The public administration sector also supported the province's economy through realized public servant spending, which was aided by holliday allowance for Idul Fitri in March 2025.

"Seeing that public consumption is still high, we are optimistic that the West Sulawesi economy is still strong. That showed how the [West Sulawesi] people's purchasing power is still at a good level," he said.