Indonesia's economy expanded by 5.3% in the second quarter of 2026, down from 5.6% in the previous quarter. Despite the slowdown, this growth exceeded the 5.1% forecast by Bloomberg economists. The deceleration was attributed to strong household and government spending, which helped maintain the economy's momentum.
Economic Performance in Q2
Household consumption, accounting for over half of Indonesia's GDP, increased by 5.1%. Government expenditure also rose significantly by nearly 16%. These factors contributed to the economy's overall performance, despite the slight slowdown.
President Prabowo Subianto's administration aims for an ambitious economic growth target of 8% by 2029. While some experts question the feasibility of this goal, Finance Minister Purbaya Yudhi Sadewa assured that the government will implement various fiscal and monetary policies to support economic growth for the remainder of the year.





























