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

Jakarta, CNBC Indonesia — The Garuda rupiah strengthened further against the US dollar after Statistics Indonesia (BPS) announced that Indonesia’s economic growth in the second quarter of 2026 came in higher than market expectations.

According to Refinitiv data, at 11.15 WIB on Wednesday (5/8/2026), the rupiah rose 0.61% to Rp17,905/US$.

The appreciation was sharper than at the opening of trading this morning, when the rupiah was up 0.32% at Rp17,957/US$.

BPS reported that Indonesia’s economy grew 5.29% year on year (yoy) in the second quarter of 2026. On a quarter-to-quarter (qtq) basis, the economy grew 3.73% compared to the first quarter of 2026.

Based on gross domestic product (GDP) figures, Indonesia’s economy in the second quarter of 2026 at current prices reached Rp6,552.1 trillion, while GDP at constant prices reached Rp3,576.2 trillion.

The growth outturn was above the market consensus compiled by CNBC Indonesia from 15 institutions, which had previously estimated annual growth of 5.12% and quarterly growth of 3.56%.

The result served as positive sentiment for the rupiah, as it showed the domestic economy was still able to grow solidly amid external pressures. Growth of 5.29% was also higher than the 5.12% recorded in the second quarter of 2025.

Nevertheless, on an annual basis, second-quarter 2026 growth still slowed compared to the first quarter of 2026, which reached 5.61%. However, on a quarterly basis, the economy managed to grow strongly after contracting 0.77% in the previous quarter.