Jakarta. Indonesia's gross domestic product (GDP) grew 5.29% year-on-year in the second quarter of 2026, accelerating from a year earlier as household consumption and investment remained the main drivers of growth, Indonesia’s Central Statistics Agency (BPS) reported on Wednesday.

The economy was valued at Rp 6,552.1 trillion ($365.67 billion) at current prices and Rp 3,576.2 trillion at constant prices during the April-June period.

"Indonesia's economy grew 5.29% year-on-year in the second quarter of 2026, 3.73% quarter-on-quarter, and 5.45% in the first half compared with the same period last year," Moh Edy Mahmud, Deputy for National Accounts and Statistical Analysis at BPS, said during a press briefing.

Household consumption remained the largest contributor to economic growth, accounting for 2.67 percentage points of the overall expansion, followed by gross fixed capital formation, or investment, at 2.06 percentage points and government consumption at 1.07 percentage points. Net exports, meanwhile, reduced growth by 0.78 percentage point as imports outpaced exports.

All expenditure components recorded positive annual growth. Household consumption, which accounted for 53.32% of GDP, rose 5.06% year-on-year, while investment grew 6.87%. Exports increased 4.13%, government consumption surged 15.97%, and spending by non-profit institutions serving households expanded 6.93%.

"All expenditure components recorded positive growth in the second quarter of 2026. Household consumption remained the largest source of economic growth, contributing 2.67 percentage points," Edy said.

From the production side, nearly all business sectors expanded from a year earlier except mining. Manufacturing remained the largest source of growth, contributing 0.90 percentage point, followed by trade (0.83 percentage point), construction (0.62 percentage point), and information and communication (0.48 percentage point).

Manufacturing, agriculture, trade, construction, and mining together accounted for 63.73% of Indonesia's GDP.

The fastest-growing sectors were electricity and gas supply, which expanded 10.81%, followed by accommodation and food services at 10.60%, supported by higher hotel occupancy and stronger food service activity alongside the wider rollout of the government's Free Nutritious Meals (MBG) program. Information and communication grew 6.97% on broader use of telecommunications services across sectors including healthcare, education, and trade.

Mining was the only sector to contract, shrinking 1.64% year-on-year.

"Nearly all business sectors posted positive growth except mining. Mining contracted 1.64% due to lower production of several mineral commodities, including bauxite, tin, and nickel ores, as well as underground mining operations at the Grasberg Block Cave in Central Papua that have yet to fully recover," Edy said.

BPS said domestic demand remained resilient throughout the quarter. Spending at restaurants and hotels rose 11.97% year-on-year, consumer goods imports climbed 27.15%, motorcycle sales increased 6.62%, and passenger car sales jumped 25.50%. Electronic payment transactions using e-money, debit cards, and credit cards also continued to grow, while e-commerce transactions expanded 35.13%.

Manufacturing activity remained in expansion territory during the quarter. The Manufacturing Business Condition Index (IKBM) stood at 52.31, Bank Indonesia's Prompt Manufacturing Index reached 51.43, and the Industrial Confidence Index averaged 52.74.

Investment indicators also strengthened. Combined domestic and foreign direct investment realization increased 7.14% year-on-year, while investment in downstream-processing industries reached Rp 152.7 trillion, up 5.72% from a year earlier.

Edy said Indonesia's major trading partners generally continued to expand despite slower growth in some economies.

"Vietnam and Malaysia strengthened compared with both the previous quarter and a year earlier, while Singapore and South Korea grew faster than a year ago but slowed from the first quarter. The United States and China both recorded slower growth, but Indonesia's major trading partners generally remained in positive territory," he said.

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