Indonesia Quarterly Economic Review Q2-2026: Government Programs to Cover Sluggish Growth

Indonesia’s economy grew 5.29% year-on-year in Q2 2026, exceeding LPEM FEB UI’s 4.80% prerelease estimate. The report notes that headline growth was supported by stronger government consumption, which rose 15.97%, alongside government-related programmes that contributed to vehicle investment. Excluding government consumption and vehicle GFCF, underlying growth would have been 3.13%. The report suggests that growth remained somewhat concentrated rather than broadly distributed across the economy, with underlying growth still below 5%. It also highlights purchasing power, the business environment, and productivity as areas that may warrant continued policy attention.

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