Indonesia’s economy grew 5.3% in the second quarter, beating forecasts but slowing from the previous quarter’s 5.6%.
JAKARTA: Indonesia’s economic growth slowed slightly in the second quarter of the year, though the data released by the statistics agency Wednesday still beat expectations thanks to strong household and government spending.
Southeast Asia’s largest economy expanded 5.3% in April-June, compared with the 5.6% seen in the previous three months. It was, however, better than the 5.1% projected in a survey of economists by Bloomberg.
Household expenditure, which accounts for more than half of gross domestic product, increased 5.1%, Statistics Indonesia official Moh Edy Mahmud said.
“Household consumption grew strongly, driven by the momentum (from) holiday and religious holiday” spending, he added.
Government expenditure climbed nearly 16%.
President Prabowo Subianto’s government is chasing a growth target of 8% by 2029 as one of its major policy objectives, an ambitious goal some experts warn would be hard to reach.
Finance Minister Purbaya Yudhi Sadewa said Monday the government would stimulate the economy for the rest of the year and could see growth of around 6% in the second half of 2026.
“I will put everything on the market, every possible policy from the fiscal, monetary side to ensure that the domestic economy can grow at its (full) potential,” he said in a televised speech.
