Airlangga Optimistic that the Indonesian Economy in the Second Quarter of 2026 Will Grow Above 5 Percent
JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto estimates that Indonesia's economic growth in the second quarter of 2026 will remain above the 5 percent level.
The official economic growth figure is scheduled to be announced by the Central Statistics Agency (BPS) on August 5, 2026.
For comparison, the national economy in the first quarter of 2026 recorded growth of 5.61 percent year on year.
"(National economic growth is estimated) above 5 (percent) still," he told the media, quoted on Thursday, July 30.
Airlangga explained that this optimism was driven by the strong realization of investment and various incentive policies that the government had rolled out to support economic activity.
"The second quarter (the driving factor) is still related to investment, related to some incentives driven by the government," he said.
He also believes that economic performance in the third and fourth quarters of 2026 will remain maintained, driven by government spending and investment which will be the main support for economic growth throughout the second semester of this year.
On the other hand, Airlangga assessed that investor interest in Indonesia is still quite high, but he admitted that there are still a number of obstacles, especially related to the licensing process.
Regarding the potential impact of El Nino on food inflation in the second half of this year, Airlangga ensured that the government continued to monitor developments in various regions.
He added that the government was mapping areas that needed support for pumping and water distribution to maintain the productivity of the agricultural sector, especially in areas that were beginning to experience a decrease in rainfall.
"We just monitor it because in some areas the rain has not stopped and where areas can be solved with pumping, where the rivers still have a lot of water and how to distribute that water to productive areas," he said.