Indef: 5.29 Percent Economic Growth Still Solid, but Unemployment Challenges Remain Large

The Institute for Development of Economics and Finance (Indef) has assessed that Indonesia’s economic growth of 5.29 percent year-on-year (yoy) in the second quarter of 2026 still shows a fairly good performance, although it slowed compared to the 5.61 percent growth recorded in the first quarter. Indef’s Director of Big Data Development, Eko Listiyanto, stated that the quarterly slowdown was normal, given the absence of seasonal factors that had boosted activity in the previous period. “The growth declined quarter-on-quarter because there is no longer the effect of the fasting month and Eid, which fell in the first quarter,” Eko said when contacted in Jakarta on Wednesday (5/8/2026).

However, Eko reminded that achieving economic growth above five percent does not automatically resolve the various structural problems still facing the national economy. He assessed that the challenges of job creation and improving public welfare still require the government’s attention. “Even though it is still above five percent, the unemployment challenge remains large and purchasing power has not changed much,” Eko said.

According to Eko, the government needs to ensure that economic growth is capable of creating broader job opportunities and increasing people’s incomes. In this way, economic growth will not only be reflected in macro figures but will also be directly felt by the public through increased purchasing power and quality of life. Previously, Statistics Indonesia (BPS) announced that the Indonesian economy grew by 5.29 percent year-on-year in the second quarter of 2026. This figure was lower than the previous quarter but higher than the same period last year. BPS Deputy for Balance Sheet and Statistical Analysis, M. Edy Mahmud, stated that based on Gross Domestic Product (GDP) at current prices, the economy reached Rp 6,552.1 trillion, while at constant prices it amounted to Rp 3,576.2 trillion.