Prabowo: First-Half 2026 Economic Growth Highest in 13 Years

President Prabowo Subianto has stated that the Indonesian economy recorded a positive performance throughout the first half of 2026. The national economy grew by 5.45% year-on-year (yoy), marking the highest growth in the past 13 years.

“Our economy in the first semester of this year grew at the highest rate in the last 13 years. Inflation remains under control. Domestic demand remains strong,” Prabowo said during the Government’s Introductory Statement on the Bill concerning the 2027 State Budget and its Financial Note in Jakarta on Friday (14/8).

According to data from Statistics Indonesia (BPS), Indonesia’s economic growth in the first half of 2026 reached 5.45% year-on-year compared with the same period in 2025.

From the production side, the accommodation and food and beverage services sector was the fastest-growing industry, expanding by 11.83%. Meanwhile, by expenditure component, government consumption recorded the highest growth at 18.62%.

According to Prabowo, this economic achievement came amid a global situation that remains full of challenges. The world economy faces a number of pressures, including rising energy prices triggered by war, persistently high global interest rates, pressure on exchange rates in various countries, and geopolitical tensions that have hampered international trade.

In addition to economic growth, Prabowo also highlighted the contribution of the 2026 State Budget (APBN) in maintaining stability and the momentum of the national economy.

As of the end of July 2026, state revenue was recorded to have increased by 21.3% compared with the same period the previous year. At the same time, state spending grew by 18.2%.

Prabowo explained that the increase in government spending was directed at maintaining people’s purchasing power, improving the quality of public services, and providing a boost to national economic activity.

Despite the increase in state spending, the government has been able to keep the budget deficit at a manageable level. As of the end of July 2026, the deficit was recorded at 0.91% of gross domestic product (GDP).

“This is proof that siding with the people can go hand in hand with fiscal discipline,” he said.

The President stressed that the government does not view economic growth and fiscal discipline as two agendas from which one must be chosen. According to him, both can be pursued simultaneously.

“We choose both. We do not choose between helping the people and safeguarding the state budget. We do both,” Prabowo said.