Bank Indonesia Reveals Household Consumption Still Needs a Boost

Bank Indonesia (BI) assesses that Indonesia’s economic growth remains maintained until the second quarter of 2026. However, this growth must be encouraged to grow even higher in the future.

This was conveyed by the Acting Governor of Bank Indonesia (BI), Destry Damayanti, at an online press conference following the BI Board of Governors Meeting (RDG) on Wednesday (19/8/2026).

Indonesia’s growth in the second quarter of 2026 reached 5.29% (year on year/yoy), continuing the previous growth of 5.61% (yoy). This growth was supported by fiscal stimulus, which led to increased government consumption and investment. According to BI, government consumption grew strongly due to spending on personnel, goods, and services related to the Free Nutritious Meals (MBG) programme.

“Meanwhile, household consumption is decent although it needs to be improved by utilising the fiscal stimulus,” said Destry.

Destry also assessed that exports need to be encouraged so that they can strengthen the structure of economic growth. Economic growth is expected to remain favourable, supported by the implementation of stimulus and maintained confidence among economic actors.

BI is therefore strengthening its mix of monetary, macroprudential, and payment system policies in synergy with the government. As such, BI remains confident that Indonesia’s economic growth in 2026 will be in the range of 4.9% to 5.7%.