Indonesia GDP growth slows to 5.3% in second quarter

Indonesia's economy grew 5.3 percent in April-June, official data released Wednesday showed, slowing from 5.6 percent in the previous quarter despite support from household and government spending.

The second-quarter figure was above the 5.1 percent projected in a Bloomberg survey of economists.

Statistics Indonesia official Moh Edy Mahmud said household expenditure, which makes up more than half of gross domestic product, rose 5.1 percent. He said household consumption was supported by holiday and religious holiday spending.

Government expenditure climbed nearly 16 percent.

President Prabowo Subianto's government is targeting 8 percent growth by 2029. Finance Minister Purbaya Yudhi Sadewa said Monday the government would seek to stimulate the economy for the rest of 2026 as it chases growth of about 6 percent in the second half of the year.

Capital Economics expressed doubt about the official figures. Senior Asia Economist Gareth Leather said growth was likely to struggle, arguing that higher central bank interest rates would weigh on consumption and investment.