Indonesia Macro Update - GDP Growth 05 Aug 2026
KBVS MACRO UPDATE
Wednesday, 4 August 2026
Fiscal Spending Continues to Anchor Indonesia’s 2Q26 GDP
Indonesia's economy expanded above expectations in 2Q26, with GDP growing 5.29% YoY (Cons: 5.14%, KBVS: 5.02%, Prev: 5.61%) as resilient domestic demand continued to offset a challenging external environment. Government spending remained the primary growth driver, while household consumption stayed solid and investment accelerated.
We expect GDP growth to remain within the 5.0%–5.2% range throughout the remainder of 2H26F. Going forward, stronger private investment, a recovery in manufacturing and exports, as well as continued inflation and exchange rate stability, will be critical to sustaining Indonesia's growth momentum.
Regards,
Khairunnisa N Syahfiraputri & Anggun Rahmadani- KBVS Research Team