Airlangga: Q2 2026 Economic Growth Remains Above 5 Percent

The main factors driving national economic growth performance in the second quarter include investment and a number of incentives rolled out by the government.

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has predicted that national economic growth in the second quarter of 2026 will still be able to hold above the 5 per cent level.

“Still above 5 (per cent),” said Airlangga in response to journalists’ questions at the Office of the Coordinating Ministry for Economic Affairs in Jakarta on Wednesday.

According to Airlangga, the main factors driving national economic growth performance in the second quarter include investment and a number of incentives rolled out by the government.

He noted that investment demand in the previous quarter was relatively high. However, many business players are still asking the government to resolve domestic business obstacles through the debottlenecking programme carried out by the Strategic Government Programme Acceleration Task Force (P2SP).

In line with the government’s efforts to improve the investment climate, Airlangga said investment will remain the main component contributing to national economic growth.

For the record, the investment component, or gross fixed capital formation (GFCF), grew solidly by 5.96 per cent in the first quarter of 2026. This figure was driven by government investment, including construction related to national priorities, as well as private investment.

The national economy recorded growth of 5.61 per cent year-on-year in the first quarter of 2026.

Besides investment, Airlangga said government spending will also be a pillar of growth for the remainder of 2026.

“In the third and fourth quarters, one of the things being pushed is certainly government spending and investment,” he said.

State spending in the first semester of 2026 has been disbursed at Rp1,656 trillion, growing 17.8 per cent compared with the same period a year earlier.

Central government spending dominated, with realisation of Rp1,298.6 trillion, an increase of 29.4 per cent.

In line with this, investment realisation throughout the first semester of 2026 reached Rp1,010.6 trillion, growing 7.2 per cent compared with the same period a year earlier.