Indonesia's Economy Grows 5.29 Percent in Q2 2026, Driven by Household Consumption

Statistics Indonesia (BPS) announced that the Indonesian economy grew by 5.29 percent year-on-year (yoy) in the second quarter of 2026. This is higher than the 5.12 percent yoy growth in Q2 2025, but lower than the 5.61 percent yoy growth recorded in Q1 2026. The above-5-percent growth was mainly supported by household consumption, which remained positive.

Deputy for Balance Sheet and Statistical Analysis at BPS, M. Edy Mahmud, explained that from the expenditure side, all components grew positively in Q2 2026 on a yoy basis. The expenditure component contributing the most to GDP was household consumption, with a contribution of 53.32 percent and growth of 5.06 percent.

This was followed by the Gross Fixed Capital Formation (GFCF) component, which contributed 29.36 percent and grew by 6.87 percent. The total contribution of these two components reached 82.36 percent.

Regarding expenditure components, Edy noted that government consumption experienced high growth, driven by increased realisation of personnel expenditure as well as goods and services spending in Q2 2026. Government consumption contributed 7.57 percent and recorded growth of 15.97 percent.

“Looking at the sources of growth, in Q2 2026, household consumption remained the largest source of growth at 2.67 percent. In addition, economic growth in Q2 2026 was also supported by the GFCF component with a growth source of 2.06 percent, and government consumption provided a growth source of 1.07 percent. Meanwhile, net exports contributed a growth source of -0.78 percent,” stated Deputy for Balance Sheet and Statistical Analysis at BPS, M. Edy Mahmud, during a press conference at the BPS Building, Jakarta, Wednesday (6/8/2026).