Indonesia's Economy Maintains High Growth: A Five-Year Record

Jakarta, CNBC Indonesia – Indonesia’s economy has again recorded growth above 5% in the second quarter of this year, a figure that even exceeded market estimates.

Statistics Indonesia (BPS) reported that Indonesia’s gross domestic product (GDP) grew 5.29% year-on-year in the second quarter of 2026.

The growth moderated compared with the first quarter of 2026, which reached 5.61%. However, the figure was higher than the 5.12% growth recorded in the second quarter of 2025.

“Economic growth in the second quarter of 2026, based on GDP at current prices of Rp6,552.1 trillion and at constant prices of Rp3,576.2 trillion, grew 5.29% compared with the second quarter of 2025,” said M. Edy Mahmud, Deputy for Statistical Balance and Analysis at BPS, in the agency’s release on Wednesday (5/8/2026).

The result also exceeded the consensus of economists compiled by CNBC Indonesia from 15 institutions, which had forecast Indonesian economic growth of 5.12% year-on-year in the second quarter of 2026.

On a quarterly basis, based on GDP at constant prices released by BPS, Indonesia’s economy grew around 3.73% compared with the first quarter of 2026, rebounding from a contraction of 0.77% in the previous quarter.

Compared with second-quarter figures over the past five years, the economic growth of the second quarter of 2026 is the highest since 2022. The growth rate has continued to strengthen over the past two years, from 5.05% in 2024 to 5.12% in 2025, and now 5.29% in 2026.

Economic growth in the second quarter of 2026 was still supported by household consumption, with public spending remaining one of the main drivers of the national economy.

“Public consumption continues to grow,” said Edy.

BPS recorded that household consumption in the second quarter of 2026 grew 5.06%, contributing 53.32% to GDP.

Next was investment, or gross fixed capital formation, which grew 6.87%, contributing 29.36% to GDP.

Meanwhile, the third-largest contributor to GDP growth was exports, which grew 4.13% with a contribution of 23.13%.

The highest growth among the components, however, came from government consumption, which expanded 15.97% with a contribution of 7.57%.

The remainder of Indonesia’s economic growth was supported by consumption by Non-Profit Institutions Serving Households (NPISH), which grew 6.93% with a contribution of 1.35%.