FMCG Still Growing Strongly, Signalling Consumption as Engine of Indonesian Economy

Jakarta, CNBC Indonesia - Statistics Indonesia (BPS) recorded that throughout the second quarter of 2026, Indonesia’s economic growth reached 5.29% year-on-year (yoy), supported by public consumption which still grew by 5.06% (yoy) amid the momentum of school holidays and National Religious Holiday (HBKN) holidays.

Public spending which is still growing strongly with a contribution reaching 53.32% to GDP was said by Equity Analyst of CNBC Indonesia Research, Gelson Kurniawan, to be in line with the fairly high level of household spending activity, consumption of food and beverages outside restaurants, as well as spending on health and education.

This performance also reflects the momentum of normalisation of public consumption after the Ramadan and Eid al-Fitr period, as well as the impact of government spending. However, household consumption still requires fiscal stimulus to maintain Indonesia’s economic growth trend.

Public consumption which remains the engine of the Indonesian economy also has an impact on the Fast-Moving Consumer Goods (FMCG) sector industry which also recorded strong growth. This can be seen from spending on food and beverages which still grew by 4.2%, while health and education rose by 5.27%, but consumption of clothing and footwear as well as personal care services slowed by 3.52% due to post-Eid normalisation.

From the production side, the food and beverage industry grew by 6.51%, which is a signal that public consumption is heading towards normalisation but has not yet shown signs of a slump.

What is the analysis of public consumption and the role of the FMCG sector in the Indonesian economy? For more details, watch the review by Mercy Widjaja with Equity Analyst of CNBC Indonesia Research, Gelson Kurniawan on Closing Bell, CNBC Indonesia (Wednesday, 12/08/2026).