Airlangga and Purbaya Reveal 'Winning Strategies' to Boost Economy in Q2

Indonesia’s economy continues to show strong performance, recording growth of 5.61% (year-on-year) in the first quarter of 2026. The first-quarter economic performance was supported by household consumption, which serves as the backbone with growth of 5.52% (year-on-year), and driven by the momentum of Ramadan and Eid al-Fitr, which increased public consumption and mobility. In the second quarter of 2026, growth challenges are even greater. This is because that period lacks the major religious holiday of Eid al-Fitr, which was one of the growth drivers. Additionally, the war in the Middle East has pressured the global economic situation. Indonesia is also affected. Historically, economic growth in the quarter following Eid al-Fitr tends to slow. Therefore, Coordinating Minister for the Economy Airlangga Hartarto revealed that strategies have been prepared to maintain growth momentum in the second quarter of 2026. “For growth in Q2, one of the things we will push is government spending, because last year’s government spending base was low and in the first quarter government spending became a support, and this will also be a support in the second quarter, especially we are also maintaining public purchasing power, and the 13th-month salary for civil servants is expected to be given in June, which will also be one of the supports,” said Airlangga during a press conference at the Coordinating Ministry for the Economy office in Jakarta, quoted on Wednesday (6/5/2026). Airlangga also revealed that several incentives are being prepared, one of which is for the automotive and motorcycle sectors. Indonesia’s economy grew 5.61% driven by strong public consumption and various government priority programmes, including free nutritious meals (MBG). Airlangga explained that the current economic growth is inseparable from various government policies and the presence of major religious holidays. The impact of these policies also influences public consumption, which drives Indonesia’s economic growth. “We see that household consumption remains the main driver with growth of 5.52% and this further confirms that the momentum from Ramadan and Eid al-Fitr as well as the release of mobility increased significantly,” explained Airlangga. Finance Minister Purbaya Yudhi Sadewa also assured that the government is focused on maintaining economic growth in the second quarter of 2026 by promoting ongoing economic stimuli. “Clearly, the economy is heading towards faster growth figures and we will maintain it for the second quarter with various policies, coordination with the central bank to maintain liquidity conditions,” he said. “And we will also provide additional stimuli to the economy, yes Coordinating Minister, which will be announced soon, perhaps starting on 1 June,” stated Purbaya. Regarding rupiah strengthening, Purbaya said they will issue bonds in the form of Panda Bonds in China with lower interest rates. “So we are not too dependent on the dollar anymore. So our diversification will be even better going forward. So our prospects are good, no need to worry. Earlier, the President also told me to convey the message that my money is sufficient, there’s plenty of money. So you don’t need to worry,” emphasised Purbaya.