August 5, 2026 | 06:47 pm
TEMPO.CO, Jakarta - Indonesia's 5.29 percent growth in the second quarter of 2026 is driven primarily by the manufacturing industry and household consumption, according to Statistics Indonesia (BPS), down compared to last quarter at 5.61 percent year-on-year (yoy).
BPS Deputy Head for Balance and Statistical Analysis, M. Edy Mahmud, stated in a press conference in Jakarta on Wednesday, August 5, 2026, as quoted by Antara, that the gross domestic product (GDP) in the second quarter of 2026 reached Rp6,552.1 trillion at current prices and Rp3,576.2 trillion at constant prices.
On the business side, the manufacturing industry was the largest contributor to growth, at 0.90 percent, supported by the sector's 4.52 percent (yoy) growth. The sector accounted for 18.50 percent of total GDP.
Furthermore, economic growth was also supported by the trade sector, with growth of 0.83 percent, construction with growth of 0.62 percent, and information and communications with growth of 0.48 percent.
Meanwhile, on the expenditure side, household consumption was the largest contributor to growth, at 2.67 percent, in line with 5.06 percent year-on-year growth and continuing to dominate the GDP structure with a 53.32 percent share.
Growth was also driven by gross fixed capital formation (GFCF), with 2.06 percent, and government consumption, contributing 1.07 percent. Meanwhile, net exports contributed growth of minus 0.78 percent.
The global economic growth in 2026 is projected to reach 3.0 percent, according to the International Monetary Fund (IMF) World Economic Outlook report in July 2026.
Based on IMF projections, developing country economies are expected to grow by 3.8 percent in 2026 compared to 2025, still higher than global projections.
The IMF projections also indicate that inflation in developing countries in 2026 is likely to be higher than global conditions.
Furthermore, in terms of Indonesia's major trading partners, Vietnam and Malaysia recorded strong annual growth, both compared to the first quarter of 2026 and the second quarter of 2025.
Singapore and South Korea also experienced stronger growth compared to the second quarter of 2025, but their growth slowed compared to the first quarter of 2026.
Meanwhile, the US economy slows down compared to the first quarter of 2026 and experiences stagnant growth compared to the second quarter of 2025. China experienced slower growth compared to the first quarter of 2026 and the second quarter of 2025. Thus, the economies of several of Indonesia's major trading partners continued to grow.
Read: BPS: Bali Logs Highest Economic Growth in Q2 of 2026
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