Manufacturing and Household Consumption Underpin Indonesia's 5.29 Percent Economic Growth: BPS

Jakarta (ANTARA) - Statistics Indonesia (BPS) recorded Indonesian economic growth of 5.29 percent (yoy) in the second quarter of 2026, supported chiefly by the manufacturing or processing industry from the business sector perspective, and by household consumption from the expenditure side.

Deputy for Balance Sheet and Statistical Analysis at BPS, M. Edy Mahmud, told a press conference in Jakarta on Wednesday that gross domestic product (GDP) in the second quarter of 2026 at current prices stood at Rp6,552.1 trillion, and at constant prices at Rp3,576.2 trillion.

In more detail, from the business sector perspective, the processing or manufacturing industry was the largest source of growth at 0.90 percent, supported by sectoral growth of 4.52 percent (yoy) and a share of, or contribution to, GDP of 18.50 percent.

In addition, economic growth was also supported by the trade sector as a source of growth of 0.83 percent, construction at 0.62 percent, and information and communication at 0.48 percent.

Economic growth in the second quarter of 2026 from the expenditure side was also driven by the gross fixed capital formation (PMTB) component, contributing 2.06 percent to growth, whilst government consumption contributed 1.07 percent. Meanwhile, net exports contributed minus 0.78 percent.

As background, the global economy in 2026 is projected to grow 3.0 percent, based on the International Monetary Fund’s (IMF) World Economic Outlook report in July 2026.

According to the IMF’s projections, developing economies are expected to grow 3.8 percent in 2026 compared with 2025, still higher than the global projection.

Meanwhile, among Indonesia’s main trading partners, Vietnam and Malaysia recorded strengthening annual growth, both compared with the first quarter of 2026 and the second quarter of 2025.

Singapore and South Korea also grew more strongly compared with the second quarter of 2025, but slowed compared with the first quarter of 2026.

The United States slowed compared with the first quarter of 2026 and was stagnant compared with the second quarter of 2025. Meanwhile, China slowed both compared with the first quarter of 2026 and the second quarter of 2025. Nevertheless, the economies of several of Indonesia’s main trading partners continued to grow.