Indonesian Economy Grows 5.29 Percent in the Second Quarter of 2026

JAKARTA - The Central Statistics Agency (BPS) reported that Indonesia's economy in the second quarter of 2026 grew 5.29 percent year-on-year (yoy) and grew 3.73 percent quarter-on-quarter (qtq).

The realization of annual economic growth was higher than the second quarter of 2025 by 5.12 percent (yoy).

BPS Deputy for Balance and Statistical Analysis Edy Mahmud, said that in nominal terms, Indonesia's Gross Domestic Product (GDP) in the second quarter of 2026 reached Rp6,552.1 trillion on the basis of current prices (ADHB), and Rp3,576.2 trillion on the basis of constant prices (ADHK).

"So that Indonesia's economic growth in the second quarter of 2026 on an annual basis compared to the second quarter of 2025 grew by 5.29 percent. This performance is supported by domestic economic activity," he said in a press conference, Wednesday, August 5.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto estimated that Indonesia's economic growth in the second quarter of 2026 would remain above the 5 percent level.

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 pump support 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.