Indonesia's Economy Poised for Over 5% Growth in Q2

Indonesia's economy is projected to maintain a growth rate exceeding five percent in the second quarter of 2026. This projection is based on the expectation that both domestic and international demand will remain robust, coupled with a stabilizing inflation rate that is expected to support economic activities. The central bank (BI) anticipates that with inflation remaining within its target range, the policy interest rate is likely to be kept unchanged. This stability is expected to provide underlying support for consumption and investment activities. However, uncertainties in the global economy and geopolitical risks persist, raising concerns about the impact on exports. The economic performance of China, a key trading partner, and the monetary policy decisions in Europe and the United States are closely monitored. To sustain economic growth, the Indonesian government plans to continue focusing on infrastructure investment and improving the investment climate through deregulation. Measures to stimulate domestic consumption are also considered crucial, with policies aimed at enhancing purchasing power being explored. Regarding regional disparities, economic activity is concentrated in Java. However, extending economic benefits to other island regions remains a challenge. The government intends to strengthen investments and employment creation initiatives to invigorate regional economies.