Airlangga: Q2 2026 Economic Growth Remains Above 5 Percent

Coordinating Minister for Economic Affairs Airlangga Hartarto has predicted that national economic growth in the second quarter of 2026 will remain above 5 percent. “Still above 5 (percent),” Airlangga told reporters at the Coordinating Ministry for Economic Affairs office in Jakarta on Wednesday. According to Airlangga, the main factors driving national economic performance in the second quarter include investment and a series of incentives disbursed by the government. He noted that investment demand in the last quarter was relatively high. However, many business players are still asking the government to resolve domestic business obstacles through a debottlenecking programme by the Task Force for the Acceleration of Government Strategic Programmes (P2SP). Alongside the government’s efforts to improve the investment climate, Airlangga stated that investment will remain the main component contributing to national economic growth. For the record, the investment component, or Gross Fixed Capital Formation (PMTB), grew solidly by 5.96 percent in the first quarter of 2026. This figure was driven by government investment, including development related to national priorities, and private investment. The national economy recorded growth of 5.61 percent year-on-year (yoy) in the first quarter of 2026. In addition to investment, Airlangga said government spending will also support growth for the remainder of 2026. “In the third and fourth quarters, one of the things being pushed is government spending and investment,” he said. State spending in the first semester of 2026 reached Rp1,656 trillion, growing 17.8 percent compared to the same period the previous year. Central government spending dominated with a realisation of Rp1,298.6 trillion, an increase of 29.4 percent. In line with this, investment realisation throughout the first semester of 2026 reached Rp1,010.6 trillion, growing 7.2 percent compared to the same period the previous year.