Jakarta (ANTARA) – Indonesia’s economy likely expanded by more than five percent in the second quarter, supported by strong investment and government incentives, Coordinating Minister for Economic Affairs Airlangga Hartarto said, signaling continued resilience after stronger-than-expected first-quarter growth.“Still above five percent,” Airlangga told reporters in Jakarta on Wednesday when asked about the government’s outlook for second-quarter economic growth.Indonesia’s economy grew 5.61 percent year-on-year in the first quarter of 2026, exceeding the government’s five percent growth target as investment and domestic demand remained resilient.Airlangga said investment demand and targeted government stimulus were the main drivers of economic activity during the second quarter, helping sustain growth despite persistent global uncertainty.He said Gross Fixed Capital Formation, a key measure of investment, continued to underpin the economy and remained a major contributor to overall growth.Gross Fixed Capital Formation expanded 5.96 percent year-on-year in the first quarter, supported by private-sector investment and spending on national strategic infrastructure projects.Investment momentum continued into the first half, with realised investment reaching Rp1,010.6 trillion, or about US$55.9 billion, up 7.2 percent from a year earlier.Business groups have called on the government to remove operational bottlenecks to maintain investment inflows and improve the ease of doing business.Airlangga said the Task Force for the Acceleration of Government Strategic Programs, known as P2SP, is working to resolve regulatory and administrative constraints affecting investment projects.The task force is expected to accelerate project implementation and strengthen Indonesia’s investment climate as the government seeks to attract more domestic and foreign capital.Airlangga said government spending will become a larger driver of growth during the second half as investment remains supportive of economic expansion.“The third and fourth quarters will certainly be driven by government spending and investment,” he said.State expenditure reached Rp1,656 trillion, equivalent to about US$91.6 billion, in the first half of 2026, an increase of 17.8 percent from the same period a year earlier.Central government spending accounted for Rp1,298.6 trillion, or about US$71.8 billion, rising 29.4 percent year-on-year and representing the largest share of total expenditure.The government expects stronger public spending alongside sustained investment to help keep Southeast Asia’s largest economy on track for growth above 5 percent through the remainder of 2026.