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Indonesia's first-quarter economic growth is fastest in over three years
A 21.8% jump in government spending and stronger holiday consumption lifted GDP above forecasts, Statistics Indonesia said.
- On Tuesday, Statistics Indonesia reported that GDP grew 5.61 per cent in the January-March quarter, the fastest pace since the third quarter of 2022, driven by a 21.8 per cent surge in government spending.
- Household consumption, which accounts for over half of GDP, rose 5.52 per cent as the Muslim holy month of Ramadan and Eid festivities spurred spending, supported by President Prabowo Subianto's free-meal programs.
- Finance Minister Purbaya Yudhi Sadewa reported growth across most industries, though exports slowed significantly; investment expanded by 5.96 per cent despite global commodity disruptions from the Middle East.
- Bank Indonesia is prioritizing the rupiah amid global volatility, with economist Hosianna Evalita Situmorang at Bank Danamon warning that growth may moderate in the second quarter despite the government's 5.4 per cent target.
- Indonesia ranks among Asia's fastest-growing economies, trailing only Taiwan's 13.7 per cent performance; The International Monetary Fund cut global growth outlooks last month due to energy spikes, complicating Prabowo's push to sustain momentum.
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Indonesia's economic growth reached 5.61 percent in the first quarter of 2026. Finance Minister Purbaya Yudhi Sadewa called this achievement a signal that Indonesia is starting to emerge from stagnation at the 5 percent level.
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The Star Kuala Lumpur
The Star Kuala LumpurIndonesia posts fastest economic growth in more than three years in Q1
JAKARTA, May 5 : Indonesia's economy grew at its fastest annual pace in more than three years at the start of 2026, boosted by a surge in government spending and holiday celebrations, official data showed on Tuesday.GDP grew 5.61 per cent in the January-March quarter from a year earlier, Statistics Indonesia
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Total News Sources11
Leaning Left1Leaning Right4Center2Last UpdatedBias Distribution57% Right
Bias Distribution
- 57% of the sources lean Right
57% Right
14%
C 29%
R 57%
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