Bank Indonesia reported that the economy grew 5.29% year over year in the second quarter of 2026, easing from 5.61% in the previous period. It forecasts full-year growth of 4.9-5.7%, supported by domestic demand and government and central bank policies. Household consumption rose 5.06%, while government consumption increased 15.97% on higher personnel spending and procurement for the Free Nutritious Meals program. Investment expanded 6.87% and exports grew 4.13%. Bank Indonesia will continue coordinating monetary, macroprudential and payment system policies with the government to support growth and maintain fiscal stability.
Bank of Indonesia2026-08-05
Bank Indonesia reports 5.29% second-quarter growth, forecasts 4.9-5.7% for 2026
Bank Indonesia reported 5.29% year-over-year economic growth in the second quarter of 2026, down from 5.61% in the previous period. It forecasts 2026 growth of 4.9-5.7%, supported by domestic demand and coordinated government and central bank policies.