Qodari: 5.29 Percent Economic Growth Increasingly High Quality

Head of the Government Communication Body (Bakom) of the Republic of Indonesia, Muhammad Qodari, assessed that Indonesia’s economic growth of 5.29 percent year-on-year in the second quarter of 2026 is increasingly high quality because it is accompanied by a reduction in poverty and unemployment levels. “With this, Indonesia’s economic growth is not only solid in numbers, but also increasingly high quality and provides real benefits to the community,” Qodari said in a statement in Jakarta on Monday.

Statistics Indonesia (BPS) recorded that the Indonesian economy grew 5.29 percent year-on-year (yoy) in the second quarter of 2026. Data from the BPS National Socio-Economic Survey (Susenas) showed the number of people living in poverty in March 2026 was 22.93 million, a decrease of around 430,000 people compared to September 2025, which reached 23.36 million people.

Qodari said the economic growth was supported by several components forming the Gross Domestic Product (GDP), including household consumption which grew 5.06 percent year-on-year. According to him, the growth in consumption shows that people’s purchasing power remains maintained, supported among other things by the government’s policy of maintaining subsidised fuel prices and the implementation of a number of priority programmes.

In addition to consumption, Gross Fixed Capital Formation (GFCF) grew 6.87 percent year-on-year, which Qodari said indicates that investment activity remains strong amidst global uncertainty. Qodari said the government is striving to maintain the momentum of economic growth in the second semester of 2026, among other things through the Second Semester Economic Stimulus Package worth IDR 26.34 trillion.

The package includes, among other things, food assistance for around 33.4 million beneficiaries, transportation fare incentives, as well as a national internship programme and vocational training for the young workforce. In the long term, the government will strengthen productive sectors through industrial downstreaming, infrastructure development, strengthening food and energy security, digital transformation, and improving the quality of human resources.