Indonesian Economy Grows 5.29% in Q2 2026, Finance Minister Deems it 'Good Enough'

JAKARTA - The Indonesian economy registered a growth of 5.29 percent year-on-year in the second quarter of 2026, as reported by the Central Statistics Agency (BPS). This indicates a deceleration compared to the 5.61 percent growth achieved in the first quarter of the year. Finance Minister Purbaya Yudhi Sadewa commented on the growth figures, stating that the slowdown was largely influenced by global external pressures faced during the April to June 2026 period. He specifically highlighted the impact of the surge in world oil prices, which affected trade activities and the performance of national exports. "Slowing down in the midst of high world oil prices, right? In the second quarter, high prices are actually the impact of global prices, of course, maximum there, right? April, May, June when the world oil price is high and others, it is clear that exports of all kinds are disrupted, right? It's not optimal," Purbaya explained during a media briefing on Wednesday, August 5. Despite these challenges, the Finance Minister evaluated the 5.29 percent economic growth as a positive indicator of the Indonesian economy's resilience in the face of a difficult global environment. "We can grow 5.29%, it's good enough with that kind of situation," he asserted. Purbaya expressed confidence that the economic growth rate would see an increase in the second semester of 2026. He elaborated that the government's objective is to drive the growth rate closer to 6 percent in the third and fourth quarters by maximizing all available engines of economic growth. To facilitate this objective, the government intends to bolster liquidity within the country. This initiative aims to reduce the cost of funds within the banking sector, which in turn is expected to lead to lower credit interest rates and stimulate financing activities for businesses. "Including adding money to the economy, pressing the interest requested by SMVs under the (Ministry) of Finance to go down to a low level so that banks can put or give loans with lower interest rates," Purbaya concluded.