Indonesia's Economy Grows 5.29% in Q2, Beating Forecasts but Slowing from Q1

Indonesia's economy grew 5.29% year-on-year in the second quarter of 2026, Statistics Indonesia (BPS) reported at a press conference in Jakarta on August 5. The figure came in above the 5.12% pace recorded in the same quarter a year earlier, though it marks a step down from the 5.61% growth rate posted in the first quarter of 2026.

BPS Deputy for Balance of Payments and Statistical Analysis M. Edy Mahmud said gross domestic product reached 6,552.1 trillion rupiah at current prices, and 3,576.2 trillion rupiah at constant prices, for the quarter. Manufacturing remained the single largest contributor to overall growth, while the electricity and gas sector posted the fastest expansion of any sector, growing 10.81% year-on-year, driven largely by rising electricity sales to households, businesses, and industrial customers.

Nearly every major sector of the economy expanded during the quarter. The one exception was mining and quarrying, which contracted, according to BPS. The reading places Southeast Asia's largest economy among the region's stronger growth performers this year, even as the pace eased slightly from the start of 2026.