Business · Economy · 3 hrs ago
Indonesia’s Airlangga Says 2026 Growth Target of 5.4% Is Within Reach
Indonesia’s economy grew 5.47% in the third quarter of 2026, according to the country’s statistics agency.
Coordinating Economic Minister Airlangga Hartarto said in Jakarta that this puts the government’s 5.4% growth target for the full year within reach.
He did not give a specific forecast for the fourth quarter, but said its performance would help support the annual result.
The third-quarter growth was driven by domestic demand: household spending rose 5.04% and made up 51.97% of the economy.
Government spending grew 8.95%, with funds directed to programs including free nutritious meals and village cooperatives.
Indonesia’s growth was faster than that of several major economies, including China and Japan, but lower than India’s 7.8%.
The government expects the fourth quarter to help meet its target, and the OECD secretary-general is due to visit Indonesia in November to discuss research on the economy.
Airlangga Hartarto said Indonesia’s 2026 economic growth target of 5.4% is within reach.
He cited growth of 5.47% through the third quarter of 2026 as support for his confidence.
He said fourth-quarter performance should help sustain the cumulative result, but did not give a specific forecast for that quarter.
Household consumption grew 5.04% in the third quarter and accounted for 51.97% of national gross domestic product.
Government consumption grew 8.95%, which Airlangga attributed to faster state spending in the second and third quarters.
- Who
- Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs.
- What
- He said the 2026 growth target of 5.4% is achievable.
- When
- November 5, 2026.
- Where
- A press conference at the Coordinating Ministry for Economic Affairs in Central Jakarta.
- Why
- Growth through the third quarter was 5.47%, and Airlangga said fourth-quarter performance should support the cumulative result.
This story does not have two clearly opposing sides.
The government accelerated state spending, which Airlangga said contributed to higher government consumption.
Indonesia’s economy grew 5.47%, supported by domestic demand.
Airlangga said the 2026 growth target of 5.4% remained within reach at a press conference in Jakarta.
- 2026 growth target
- 5.4%
- Growth through Q3 2026
- 5.47%
- Household consumption growth in Q3
- 5.04%
- Household share of GDP in Q3
- 51.97%
- Government consumption growth in Q3
- 8.95%
What people are saying
For Q4, the government still targets 5.4 percent year-to-date, so the target is roughly the same as what was achieved in Q3.
In November, the OECD secretary-general will also come to Indonesia and discuss the results of their research on the Indonesian economy.