Economy Grows 5.29%, Positive Achievement Amidst Global Turmoil

Indonesia’s economy grew by 5.29% year-on-year (yoy) in the second quarter of 2026, up from 5.12% in the same period last year, amidst a global environment still fraught with uncertainty. The growth was driven by very strong investment, increased household consumption, and various government policies aimed at maintaining public purchasing power and boosting economic activity.

Senior economist at the Prasasti Center, Piter Abdullah, stated that the growth figure was in line with projections. “I think the 5.29% figure is in line with expectations, in line with forecasts. Because the economy will always grow,” he said.

Piter added that the domestic economy remains quite resilient in the face of ongoing political turmoil. “The existing indicators reflect how resilient the Indonesian economy is in facing global shocks, because we know that the global turmoil is not yet over, but I am optimistic that Indonesia will remain resilient,” he explained.

He cited the ongoing war in the Middle East, although its intensity has begun to decrease following peace efforts. The war between Russia and Ukraine is also still occurring, but its intensity has similarly started to wane. “Tensions still exist, but now they have relatively subsided because it has been going on for so long and we have started to consider the war as something normal,” Piter said.

Despite the remaining risks from global turmoil, he believes the Indonesian economy will remain quite strong, at least until the end of 2026. “I think the Indonesian economy will remain quite strong and resilient. If our policies are right, even amidst global turmoil we will be able to grow,” he stated.