Indonesia's Economy Grows 5.29% and Rupiah Strengthens, Dollar Falls to Rp17,905

The Garuda Rupiah strengthened further against the United States dollar after Statistics Indonesia (BPS) announced second-quarter 2026 economic growth that exceeded market expectations. Referring to Refinitiv data, on Wednesday (5/8/2026) at 11:15 WIB, the rupiah appreciated 0.61% to Rp17,905/US.Thisstrengtheningwassharpercomparedtothemorning′stradeopening, wheretherupiahwasrecordedappreciating0.32. BPS reported that the Indonesian economy in the second quarter of 2026 grew 5.29% on an annual basis (year-on-year/yoy). On a quarterly basis (quarter-to-quarter/qtq), the economy grew 3.73% compared to the first quarter of 2026. Based on Gross Domestic Product (GDP) size, Indonesia’s economy in the second quarter of 2026 at current prices was recorded at Rp6,552.1 trillion, while GDP at constant prices reached Rp3,576.2 trillion. This economic growth realisation was above the market consensus compiled by CNBC Indonesia from 15 institutions. Previously, the Indonesian economy was estimated to grow 5.12% annually and 3.56% quarterly. This achievement became a positive sentiment for the rupiah as it shows the domestic economy is still able to grow solidly amid external pressures. The 5.29% growth was also higher than the second quarter of 2025 growth of 5.12%. However, on an annual basis, second-quarter 2026 economic growth still slowed compared to the first quarter of 2026, which reached 5.61%. Yet on a quarterly basis, the economy managed to grow strongly after contracting 0.77% in the previous quarter.