Dissecting Efforts to Chase Economic Growth Targets by Year-End

Indonesia’s economy has again recorded promising growth, surpassing that of the world’s major economies. In the second quarter, Indonesia posted the highest economic growth among G20 countries.

Statistics Indonesia (BPS) reported on Wednesday (5/8/2026) that Indonesia’s Gross Domestic Product (GDP) grew 5.29% year-on-year (yoy) in the second quarter of 2026. The growth slowed compared with the first quarter of 2026, which reached 5.61% yoy. Nevertheless, the economy still expanded above 5% and exceeded market expectations.

Bank Indonesia (BI) estimates that Indonesia’s overall economic growth in 2026 will remain solid, in the range of 4.9-5.7% (yoy), supported by domestic demand in line with policies pursued by the Government and Bank Indonesia to continue driving economic growth.

“Bank Indonesia continues to strengthen its policy mix through monetary, macroprudential, and payment system policies that work in close synergy with Government policies to maintain stability while continuing to promote sustainable economic growth,” explained Ramdan Denny Prakoso, Executive Director of Bank Indonesia’s Communication Department, as quoted on Wednesday (12/8/2026).

Household consumption remains the main driver of the economy. This component contributed 2.67% to growth, with a share of 53.32% of GDP in the second quarter of 2026. In terms of growth, household consumption expenditure rose 5.06% (yoy), easing from 5.52% in the first quarter of 2026, when public consumption received a major boost from Ramadan and Idulfitri.

What factors can serve as supports, and what are the challenges to economic growth in the second quarter of 2026? Is investment a key pillar?

To discuss national economic growth in the second quarter of 2026 in depth, CNBC Indonesia will host Leo Putera Rinaldy, Chief Economist of PT Bank Negara Indonesia (Persero) Tbk, on Power Lunch on Thursday, 13 August 2026, at 09.00 WIB. Leo will thoroughly examine the factors that weighed on and supported economic growth in the second quarter of 2026, whether investment is the main pillar, and whether household consumption is indeed normalising after the holiday momentum in the first quarter of 2026.

In addition, BNI will project the direction of Indonesia’s economic growth for the remainder of 2026 and offer recommendations for the government to strengthen economic resilience.