No. 28/150/DKom
Indonesia's economy expanded by 5.29% (yoy) in the second quarter of 2026, following 5.61% (yoy) growth in the previous period. Overall, Bank Indonesia forecasts solid economic growth in 2026 in the 4.9-5.7% (yoy) range, underpinned by domestic demand in line with the policies instituted by the Government and Bank Indonesia to continue fostering sustainable economic growth. Bank Indonesia continues strengthening its policy mix through monetary, macroprudential and payment system policies in close synergy with Government policies to maintain fiscal stability, while supporting sustainable economic growth.
In terms of spending, economic growth in the second quarter of 2026 was driven by domestic economic activity. Household consumption grew 5.06% (yoy) in line with the school holiday period and several national religious holidays (HBKN). Government consumption posted 15.97% (yoy) growth, supported by the increasing realisation of personnel expenditures, including disbursement of the 13th-month salary, as well as the procurement of goods and services related to the Free Nutritious Meals (MBG) program. Consumption by non-profit institutions serving households (NPISH) recorded robust growth of 6.93% (yoy) in the reporting period. Investment increased by 6.87% (yoy), primarily driven by growth in the motor vehicle subcomponent, as well as public and private investment in line with increasing investment realisation. Exports grew 4.13% (yoy) on the back of demand from major trading partners.
By sector, various key economic sectors maintained solid growth. As the main contributors to economic growth, the manufacturing industry, trade, construction, as well as information and communication sectors recorded solid growth in line with maintained domestic demand. In addition, accommodation and food service activities also posted positive growth in line with higher hotel occupancy rates and broader coverage of MBG beneficiaries. Spatially, the highest economic growth in the second quarter of 2026 was recorded in the Bali-Nusa Tenggara (Balinusra) region, followed by Java, Sulawesi, Sumatra, Kalimantan, as well as Maluku and Papua.
Jakarta, 5th August 2026
Communication Department
Ramdan Denny Prakoso
Executive Director
