Jakarta: Indonesia's gross domestic product (GDP) grew 5.29 per cent year-on-year (y-o-y) in the second quarter of 2026, driven mainly by manufacturing on the production side and household consumption on the expenditure side. Statistics Indonesia (BPS) National Accounts and Statistical Analysis deputy M Edy Mahmud reported that GDP at current prices reached 6,552.1 trillion rupiah, while GDP at constant prices stood at 3,576.2 trillion rupiah.

According to BERNAMA News Agency, M Edy Mahmud highlighted that the Indonesian economy in the second quarter of 2026 witnessed a growth rate higher than the 5.12 per cent recorded in the same period of the previous year. The economy also experienced a quarter-on-quarter growth of 3.73 per cent, with cumulative growth in the first half of 2026 reaching 5.45 per cent compared to the corresponding period last year.

From the production perspective, manufacturing emerged as the largest growth source, contributing 0.90 percentage points after expanding 4.52 per cent y-o-y and accounting for 18.50 per cent of GDP. On the expenditure side, household consumption was the largest growth contributor, increasing by 5.06 per cent y-o-y, contributing 2.67 percentage points to growth, and accounting for 53.32 per cent of GDP.

Gross fixed capital formation added 2.06 percentage points to economic growth, while government consumption contributed 1.07 percentage points. However, net exports subtracted 0.78 percentage points. All business sectors recorded positive y-o-y growth in the second quarter, except mining.

Trade activity was bolstered by an increase in goods distribution due to higher supplies from the agriculture and manufacturing sectors as well as imports, alongside stronger sales of cars and motorcycles, particularly commercial vehicles. Trade contributed 0.83 percentage points to overall economic growth, followed by construction at 0.62 percentage points and information and communication at 0.48 percentage points.