Coordinating Minister Airlangga: 5.29% Economic Growth Quite Good Amid Global Turmoil

Coordinating Minister for Economic Affairs Airlangga Hartarto has assessed that Indonesia’s economic growth of 5.29% in the second quarter of 2026 is a fairly good performance amid persistent global turmoil. He noted that the economy grew by 5.45% throughout the first half of 2026. “The 5.29% figure is quite good, and we grew 5.45% in the first semester of this year, amidst ongoing global turmoil and without any major events in the second quarter,” Airlangga said during a press conference at his office on Wednesday (5/8/2026).

Airlangga further stated that the government has successfully maintained economic growth above 5% for the last seven years. He noted that Indonesia’s economic performance remains one of the best among Southeast Asian countries. The minister also highlighted regional growth, particularly in Bali and Nusa Tenggara, which recorded growth above the national average at 6.1%, indicating that the tourism sector is contributing significantly to regional welfare.

In Java, which remains the main contributor to national economic growth, Airlangga emphasised the importance of smooth supply chains and distribution. He also pointed to the Free Nutritious Meals programme as a supporting factor for economic activity. Furthermore, the minister noted that despite ongoing layoff challenges, the labour market remains robust, with 1.45 million direct jobs created in the first half of 2026, a 15% increase compared to the previous year. This job creation is supported by new investments that are no longer concentrated solely in Java but are spreading to other provinces following downstream industrial policies, which account for 30% of total investment or Rp300 trillion. Airlangga also welcomed the stable sovereign rating outlook from S&P Global Rating and the AAA rating for Indonesia’s Panda Bond issuance from a Chinese rating agency, stating that it reflects international confidence in Indonesia’s solid macroeconomic figures.