August 5, 2026 | 02:31 pm
TEMPO.CO, Jakarta - Statistics Indonesia (BPS) announced that economic growth in the second quarter of 2026 reached 5.29 percent annually. This figure is down from 5.61 percent in the first quarter of 2026.
BPS Deputy for Balance Sheets and Statistical Analysis, M Edy Mahmud, stated that the main contributors to economic growth in the second quarter were the manufacturing industry (0.90 percent), trade (0.83 percent), construction (0.62 percent), information and communication (2.46 percent), and others (2.46 percent). "This was driven by increased production activity to meet domestic demand," he said at a press conference at the BPS office in Jakarta on Wednesday, August 5, 2026.
In terms of expenditure, the main contributors to economic growth were household consumption at 2.67 percent, Gross Fixed Capital Formation (GFCF) at 2.06 percent, government consumption at 1.07 percent, and net exports at minus 0.78 percent. Thus, household consumption was the highest source of growth in the second quarter of 2026.
Edy said the highest household consumption growth occurred in restaurant and hotel spending, at 6.47 percent, in line with increased consumption of prepared food by food and beverage providers. Transportation and communication consumption grew 5.71 percent, driven by private transportation and motor vehicle purchases and repairs. "Household consumption grew in line with the momentum of national holidays and religious holidays," he said.
In terms of GFCF, Edy said, growth was driven by government investment in the vehicle subcomponent, which grew by 26.03 percent. Other equipment subcomponents grew by 16.18 percent, both domestically produced and imported. According to Edy, GFCF growth is in line with the 7.14 percent increase in investment realization by the Investment Coordinating Board. "GFCF grew positively, driven by government and private investment," he said.
Meanwhile, government consumption was driven by increased employee spending, in line with the payment of the 13th salary for Civil Servants/Indonesian National Armed Forces (TNI) and the Indonesian National Police (Polri). According to Edy, this was also supported by the accelerated payment of allowances to non-Civil Servants educators.
Edy noted the increase in government spending on goods and services, particularly spending on the Free Nutritious Meal (MBG) program. "Government consumption is growing in line with the increase in spending," he said.
Read: Indonesia's Financial Sector Stable for Q2 of 2026, Says Purbaya
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