NTT Economy Grows 5.01% in Q2 2026, Driven by Services and State Spending

Kupang — East Nusa Tenggara’s economy grew 5.01% year on year in the second quarter of 2026, with the strongest expansion in accommodation and food services and a marked rise in government consumption, according to official data cited by Bank Indonesia and the Ministry of Finance’s regional treasury office in Kupang.

In its August 2026 provincial economic report, Bank Indonesia said East Nusa Tenggara (NTT) recorded year-on-year growth of 5.01% in the second quarter, compared with 5.32% in the same quarter of the previous year. The regional office of the Directorate General of Treasury (DJPb) later highlighted the same figure, noting that NTT’s quarter-on-quarter growth reached 7.11%, higher than the national q‑to‑q rate of 3.73%.

Measured by gross regional domestic product (GRDP), NTT’s economy at current prices reached Rp41.13 trillion in the second quarter of 2026, while GRDP at constant 2010 prices stood at Rp21.87 trillion, according to a detailed August 6 report on the provincial economy. The DJPb office reiterated those figures in its September press release on the region’s fiscal performance.

The fastest growth among business sectors came from accommodation and food services, which expanded 18.38% year on year in the quarter. A local economic report in Kupang also noted that from the production side, this sector posted the highest growth both year on year and quarter on quarter, reflecting strong demand for lodging and dining services.

Government consumption and GDP structure

On the expenditure side, government consumption grew 12.23% year on year in the second quarter, according to the DJPb press release summarising NTT’s fiscal and economic conditions. The release said government spending played a visible role in supporting economic activity, with central-government expenditure in the province growing 28.01% and national revenue from NTT up 12.18% in the year to July 2026.

Household consumption remained the main driver of NTT’s economy, though specific percentage shares for household spending were not broken out in the central bank’s summary. The August 6 provincial report described household spending as the dominant component of expenditure, with public administration, wholesale and retail trade, and construction among the largest contributors to overall economic growth.

Bank Indonesia’s regional economic assessment stated that NTT’s overall economic performance in 2026 was expected to remain solid, with full-year growth projected in a range of around 4.2–5.2%, broadly in line with or slightly stronger than the previous year’s 5.14%. The DJPb release added that the second-quarter outcome was consistent with strong fiscal support and improving domestic demand.

Sectoral performance

The August 6 report on NTT’s GRDP showed that all major business sectors recorded positive growth in the second quarter of 2026 compared with a year earlier. The highest year-on-year growth was in accommodation and food services at 18.38%, followed by sectors including electricity and gas supply and water supply, waste management and recycling, which posted double-digit increases.

Agriculture, forestry and fisheries remained the backbone of NTT’s economy, accounting for the largest share of provincial GRDP. The report said agricultural performance benefited from higher output and continued activity in livestock and fisheries, though it did not quantify export volumes.

Key figures for NTT’s second quarter, based on Bank Indonesia and DJPb data, include:

• Year-on-year growth in Q2 2026: 5.01%
• Quarter-on-quarter growth: 7.11%
• GRDP at current prices: Rp41.13 trillion
• GRDP at constant 2010 prices: Rp21.87 trillion
• Accommodation and food services growth (yoy): 18.38%
• Government consumption growth (yoy): 12.23%

Regional position in Bali–Nusa Tenggara

At the wider regional level, NTT forms part of the Bali–Nusa Tenggara economic corridor, which recorded the highest growth among Indonesia’s main island groupings in the second quarter of 2026. National media reporting on the statistics agency’s release said Bali–Nusa Tenggara grew 6.10% year on year, supported by tourism and related services.

Within that corridor, NTT contributed 1.12 percentage points to the region’s 6.10% growth rate, compared with 2.77 percentage points from Bali and 2.21 percentage points from West Nusa Tenggara, according to economic coverage based on the national statistics release. This places NTT as the third-largest contributor to regional growth behind Bali and West Nusa Tenggara, even as its provincial economy continues to expand at a solid pace.

Sources

• Bank Indonesia – Laporan Perekonomian Provinsi Nusa Tenggara Timur, Agustus 2026
• NTT Aktual – Ekonomi NTT Triwulan II 2026 Tumbuh Sebesar 5,01 Persen
• DJPb Kemenkeu NTT – Siaran Pers Kinerja APBN Lingkup Provinsi NTT hingga Juli 2026
• CNBC Indonesia – Ekonomi Bali-Nusra Tumbuh 6,1% di Q2, Sukses Saingi Kinerja Nasional
• Kontan – BPS: Bali-Nusa Tenggara Catat Pertumbuhan Ekonomi Tertinggi pada Kuartal II 2026