Indonesian Economy Grows 5.29 Percent in the Second Quarter of 2026, Purbaya Says It is Still Good Enough
JAKARTA - Finance Minister Purbaya Yudhi Sadewa assessed that the slowdown in Indonesia's economic growth in the second quarter of 2026 was still in a fairly good condition, considering that the national economy faced various external pressures during the period.
Previously, the Central Statistics Agency (BPS) reported that Indonesia's economy in the second quarter of 2026 grew by 5.29 percent year-on-year (yoy), lower than the growth in the first quarter of 2026 which reached 5.61 percent.
According to Purbaya, the slowdown is inseparable from the global pressure that occurred from April to June 2026, especially the surge in world oil prices which had an impact on trade activities and the performance of national exports.
"Slowing down in the midst of high world oil prices, right? In the second quarter, high prices are actually the impact of global prices, of course, maximum there, right? April, May, June when the world oil price is high and others, it is clear that exports of all kinds are disrupted, right? It's not optimal," said Purbaya in a media briefing, Wednesday, August 5.
However, he assessed that the achievement of economic growth of 5.29 percent still showed the resilience of the Indonesian economy in the midst of a challenging global situation.
"We can grow 5.29%, it's good enough with that kind of situation," he said.
Purbaya is optimistic that the economic growth rate will increase again in the second semester of 2026.
He added that the government would optimize various sources of economic growth so that the growth rate could move closer to 6 percent in the third and fourth quarters of 2026.
"But in the future, I am confident that in the third and fourth quarters, we will push for a faster high round towards 6 percent by maximizing all the growth engines in the economy," he said.
Purbaya added that to achieve this target, the government would strengthen liquidity in the country so that the cost of funds in the banking sector could be suppressed, so that credit interest rates are expected to decrease and be able to encourage financing activities for businesses.
"Including adding money to the economy, pressing the interest requested by SMV-SMV under the (Ministry) of Finance to go down to a low level so that banks can put or give loans with lower interest rates," he concluded.