Indonesia's Economic Growth Reaches 5.29% in Q2-2026

Jakarta - The Central Statistics Agency (BPS) recorded that Indonesia’s economic growth in the second quarter of 2026 grew by 5.29% year-on-year (yoy). This growth was recorded as slowing compared to the previous quarter’s 5.61% yoy. “Economic growth in the second quarter of 2026, based on GDP at current prices, was Rp 6,552.1 trillion and at constant prices Rp 3,576.2 trillion, so economic growth in Q2-2026 compared to Q2-2025, or yoy, grew by 5.29%,” said M. Edy Mahmud, Deputy for Balance Sheet and Statistical Analysis, during the BPS release on Wednesday (5/8/2026). The GDP data release was higher than the consensus of economists compiled by CNBC Indonesia from 15 institutions. In this consensus, Indonesia’s economic growth was estimated to reach 5.12% year-on-year (yoy) in Q2-2026. Meanwhile, on a quarterly basis, the economy was projected to grow 3.56% compared to the previous quarter (quarter-to-quarter/qtq). The Q2 economy was influenced by global pressures, especially since the outbreak of war between the United States and Israel with Iran. This drove a surge in world oil prices and disrupted global supply chains following the closure of the Strait of Hormuz. At the same time, global financial markets experienced turmoil. Many countries raced to set high interest rates as a mitigation measure against soaring inflation and attractive yields. Nevertheless, the strength of the domestic economy was still visible, driven by the disbursement of the 13th salary for civil servants, TNI, and Polri, increased investment, and rising retail and motor vehicle sales.