Sustained growth

INDONESIA - Report 14 Aug 2026 by Cyrillus Harinowo

Indonesia's Central Board of Statistics released its national accounts data for Q2 2026, showing that the Indonesian economy grew 5.29% Y/Y, below the Q1 rate of growth of 5.61%. With that, Indonesia's economy has grown by 5.45% in the first semester of 2026.

The Central Board of Statistics also released its balance of trade report for June 2026, reporting that trade balance registered another deficit, although the value of the June deficit shrank by 72.02% compared to May. The deficit in June 2026 was $450.5 million compared to the $1,610.2 million deficit in May 2026. The total trade surplus for the first six months of 2026 stands at $3,577 million, 81.75% lower than $19,595.9 million achieved in the same period of the previous year. Exports in June 2026 reached $25,458.7 million while imports were $25,909.2 million. Cumulative exports from January to June 2026 reached $140,814.3 million while cumulative imports for the same period were $137,237.3 million.

Bank Indonesia maintained the benchmark rate at 5.75% at its policy meeting on July 21-22, 2026. The Central Board of Statistics also reported the Consumer Price Index for July 2026, which resulted in deflation of 0.14%. With that monthly deflation, Y/Y inflation in July 2026 reached 2.88%, a level in the upper part of the inflation corridor administered by the Central Bank.

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