Indonesia's Economy Grows 5.45% in H1 2026, Among Highest in ASEAN

Indonesia's economy demonstrated robust growth in the first half of 2026, achieving a 5.45% year-on-year increase. Coordinating Minister for Economic Affairs Airlangga Hartarto expressed optimism that the economy would surpass the 2026 national budget target of 5.4% for the full year, making Indonesia a top performer in Southeast Asia.

Despite facing global headwinds such as protracted conflicts in the Middle East and Eastern Europe, trade wars, and technological disruptions, Indonesia's economy grew by 5.29% year-on-year in the second quarter. Hartarto noted this performance is positive, especially without major seasonal boosts like the Eid al-Fitr holiday, and expects further acceleration in subsequent quarters.

The 5.45% growth in the first semester is considered among the highest in the ASEAN region. While Vietnam's economy grew faster at approximately 8%, Indonesia's performance remains strong. Notably, the Bali and Nusa Tenggara regions experienced growth exceeding the national average at 6.1%, indicating a recovery in the tourism sector benefiting from both domestic and international visitors.

Java continues to be the economic powerhouse, contributing 56.4% to the national GDP with a growth rate of 5.65%, higher than the national average. This suggests strong performance in supply chains driving the national economy. The manufacturing industry contributed 18.5% with 4.52% growth, while the accommodation and food service sectors saw a significant 10.6% increase, partly supported by government programs like "Makan Bergizi Gratis" (Free Nutritious Meals) and initiatives for the hospitality and travel industries. The construction sector also outpaced national economic growth, expanding by 6.68%.

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Di tengah kondisi seperti itu, walaupun berbagai lembaga melihat pertumbuhan ekonomi global hanya tumbuh rata-rata di atas tiga persen, Indonesia masih mampu tumbuh di kuartal II sebesar 5,29 persen (year on year/yoy).