Indonesia's Economy Grows 5.3% in H1 2026 as Tourism Fuels Momentum

Indonesia's gross domestic product expanded by 5.29% in the second quarter of 2026, outpacing regional peers such as China and Saudi Arabia. The growth was driven by resilient household consumption, strong government spending, continued investment activity and robust export performance. Despite the upbeat headline, consumer confidence and job‑availability indices showed signs of softening.

The tourism sector reinforced the expansion, with foreign arrivals reaching 7.45 million in the first half of the year – a 5.71% year‑on‑year rise – and domestic trips climbing to 630.41 million, up 2.71%. Average spending per foreign visitor increased to US$1,313, a 6.36% jump, while hotel occupancy rose to 48.2% from 45.72% a year earlier. Tourism‑driven regions such as Bali and Nusa Tenggara posted 6.1% growth, underscoring the sector’s shift from a supporting role to a key driver of national economic performance.