Which sectors contributed most to the 5.3% Q2 growth?

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Indonesia's Q2 Economic Growth Driven by Household and Government Spending

Indonesia's economy experienced a 5.3 per cent expansion in the second quarter, primarily propelled by robust household and government expenditures. While this growth rate represents a slight deceleration from the previous quarter's 5.6 per cent, it exceeded market expectations of 5.1 per cent. Household consumption, a significant contributor to the nation's gross domestic product (GDP), saw a 5.1 per cent increase. Concurrently, government spending demonstrated a substantial surge of nearly 16 per cent.
Household Consumption as a Key Driver

Household expenditure, which constitutes over half of Indonesia's GDP, rose by 5.1 per cent during the April-June period. This increase was notably influenced by spending patterns associated with holiday seasons and religious observances, providing a sustained momentum for consumption.
Significant Rise in Government Expenditure

Government expenditure experienced a marked increase of nearly 16 per cent in the second quarter. This rise indicates an active role by the government in stimulating economic activity during the period.
Economic Outlook and Government Targets

The Indonesian government has set an ambitious growth target of eight per cent by 2029. To achieve this, the Finance Minister has indicated a commitment to employ all available fiscal and monetary policies to ensure the domestic economy reaches its full potential throughout the remainder of the year and into 2026.

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Which sectors contributed most to the 5.3% Q2 growth?

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