Indonesia's Economy Projected to Grow Above 5% in Q3 2026

Chief Economist of PT Bank Mandiri (Persero) Tbk, Andry Asmoro, has expressed optimism that Indonesia’s economic performance will remain robust, projecting growth above 5% for the third quarter of 2026. He stated that several factors are capable of sustaining this positive performance.

“For the third quarter, the positive factor is certainly the impact of government programmes that will support economic growth, enabling it to reach 5.29%,” he said in an interview on Thursday (13/8/2026).

In addition, from an investment perspective, the national economy is being bolstered by government spending through priority programmes such as the Free Nutritious Meals (MBG) initiative and the Village Cooperatives (KDMP) scheme. He noted that investment in building materials is being driven by the acceleration of KDMP construction, while automotive purchases are being supported by the needs of the MBG programme.

Asmoro emphasised that maintaining this momentum requires support from the private sector. “If we see this momentum, it is a very good foundation to continue so that the Indonesian economy can gradually rise from growth that was previously limited to just 5%,” he asserted.

He explained that in the second quarter of 2026, his team projected the economy to be in the range of 5.1%. However, the various priority government programmes are expected to push growth to 5.29%. He added that the second quarter serves as good momentum to prepare for the third quarter, which has already been underway for one and a half months, and to leverage existing conditions to drive growth into the fourth quarter.

Asmoro also noted that economic growth in the second quarter was not as fast as in the first quarter, which was boosted by the Ramadan period and Eid holidays. He added that the impact of the global economy had not yet been fully felt, with the heaviest pressures occurring during the second quarter.