TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto predicts that national economic growth in the second quarter of 2026 will remain above 5 percent.
"Still above 5 (percent)," Airlangga said in response to reporters' questions at the Coordinating Ministry for Economic Affairs office in Jakarta on Wednesday, July 29, 2026.
According to Airlangga, investments and state-sanctioned incentives are among the primary drivers of national growth during the second quarter of 2026.
Airlangga said investment demand was relatively high last quarter, but many business actors are still asking the government to resolve domestic business obstacles through a debottlenecking program by the Task Force for the Acceleration of Government Strategic Programs (P2SP Task Force).
In line with the government's efforts to improve the investment climate, Coordinating Minister Airlangga stated that it will remain a key component contributing to national economic growth.
For the record, the investment component, or Gross Fixed Capital Formation (GFCF), grew solidly by 5.96 percent in the first quarter of 2026. This figure was driven by government investment, including development projects linked to national priorities and private investment.
The national economy recorded 5.61 percent year-on-year (yoy) growth in the first quarter of 2026.
In addition to investment, Airlangga stated that government spending would also support growth for the remainder of 2026. "The third and fourth quarters will certainly be driven by government spending and investment," he said.
State spending in the first half of 2026 reached Rp1,656 trillion, representing a 17.8 percent growth compared to the same period the previous year. Central government spending dominated, reaching Rp1,298.6 trillion, a 29.4 percent increase.
Similarly, investment realization throughout the first half of 2026 reached Rp1,010.6 trillion, up 7.2 percent compared to the same period the previous year.
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