Airlangga: Indonesia's Economy Grows Above Global Average

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the Indonesian economy has been able to grow above the global average despite global pressures, ranging from the Russia-Ukraine conflict, the United States’ tensions with Iran, trade wars, to technological disruption.

“Amid such conditions, although various institutions see global economic growth averaging only above 3 percent, Indonesia was still able to grow by 5.29 percent in the second quarter,” he said at a press conference in Jakarta on Wednesday.

According to him, the economic growth achievement in the second quarter of 2026 continues Indonesia’s success in maintaining economic growth above 5 percent for seven consecutive years.

Indonesia’s economic growth is also among the best compared to countries in Southeast Asia, although lower than Thailand and Vietnam.

By region, economic growth in Bali and Nusa Tenggara was better than the national figure, reaching 6.1 percent, indicating that the tourism sector is already moving to improve the welfare of local areas.

Likewise, growth on Java reached 5.65 percent with a contribution to gross domestic product (GDP) of 56.4 percent, signalling that the supply chain is a driver of the national economy.

Other achievements in the second quarter of 2026 include the processing industry growing by 4.52 percent, the services, accommodation, and food and beverage sector growing by 10.6 percent, supported by the free nutritious meals programme and programmes related to the hotel and travel industry, while the construction sector grew by 6.68 percent thanks to support from the 3 million homes programme.

“This (the construction sector) will also be a driver in the second quarter and second semester, and there is also an acceleration of capital spending, especially in industrial estates, as well as the development of several government priority sectors, including development related to the red-and-white cooperatives,” the Coordinating Minister for Economic Affairs revealed.