Indonesian Political, Business & Finance News

West Java Economy Grows 5.73 Percent in Q2 2026, Outpacing National Figure

| | Source: REPUBLIKA Translated from Indonesian | Economy
West Java Economy Grows 5.73 Percent in Q2 2026, Outpacing National Figure
Image: REPUBLIKA

The economy of West Java grew by 5.73 percent year-on-year (yoy) in the second quarter of 2026, outpacing the national economic growth of 5.29 percent. Head of the West Java Central Statistics Agency (BPS) Margaretha Ari Anggorowati stated that from the production side, the Public Administration, Defence, and Compulsory Social Security business field experienced the highest growth at 18.28 percent. From the expenditure side, the highest growth was recorded in the Government Consumption Expenditure component at 40.24 percent.

The largest source of economic growth in West Java by business field in Q2 2026 yoy came from the Manufacturing Industry, with a positive contribution of 1.96 percent. Meanwhile, from the expenditure side, the largest positive contribution to growth was the Household Consumption Expenditure component at 3.03 percent.

On a quarter-to-quarter basis, West Java’s economy in Q2 2026 grew by 2.25 percent compared to the previous quarter. From the production side, the Public Administration, Defence, and Compulsory Social Security business field recorded the highest growth at 12.67 percent, while from the expenditure side, the Government Consumption Expenditure component grew the highest at 7.96 percent.

The percentage of poor people in West Java in March 2026 stood at 6.54 percent, a decrease of 0.24 percentage points compared to September 2025 and a drop of 0.49 percentage points compared to March 2025. The number of poor people in March 2026 was 3.44 million, a reduction of 114,230 people from September 2025 and a reduction of 218,270 people from March 2025. The Poverty Line in March 2026 was recorded at Rp609,790 per capita per month, with the Food Poverty Line comprising Rp454,174 (74.48 percent) and the Non-Food Poverty Line at Rp155,616 (25.52 percent).

Margaretha noted that the decline in the percentage of poor people was driven by various factors, including increasingly widespread job opportunities. An increase in employment absorption of 205,310 people from February 2026 to May 2026 led to higher family incomes, thereby stabilising purchasing power. Overall, from March 2021 to March 2026, the poverty rate in West Java showed a downward trend in both number and percentage, except for March 2022, when a fuel price hike caused an increase. The post-Covid-19 economic recovery has aligned with the gradual decline in poverty levels from March 2022 through to March 2026.

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