Indonesia's economy grew 5.61 percent in Q1 2026, the highest in five years and among G20 nations releasing data, according to BPS. Kadin, officials, and the Finance Minister praised the achievement amid global challenges. Growth was driven by household consumption, government spending, and investment.
Indonesia's Central Statistics Agency (BPS) reported 5.61 percent year-on-year economic growth for Q1 2026, the highest in five years. "If we look at Q1 2026 at 5.61 percent, that is the highest growth," said BPS Chief Amalia Adininggar Widyasanti at a press conference in Jakarta on Tuesday (5/5/2026).
Quarter-to-quarter, the economy contracted 0.77 percent from Q4 2025. Household consumption grew 5.52 percent, contributing 2.94 percentage points, boosted by mobility during Ramadan and Eid al-Fitr, plus policies like holiday allowances and BI rate at 4.75 percent. Government spending surged 21.81 percent (Rp815 trillion), including Rp80 trillion for the Free Nutritious Meals (MBG) program, while gross fixed capital formation rose 5.96 percent.
Kadin Indonesia praised the government. "We appreciate the government's performance. Government programs implemented since early 2025 are starting to show results this year," said Kadin Chairman Anindya Novyan Bakrie on May 6, 2026. He highlighted it as the top G20 performance, surpassing China (5 percent), Singapore (4.6 percent), South Korea (3.6 percent), Saudi Arabia and the US (2.8 percent).
Economy Coordinating Minister Airlangga Hartarto and Finance Minister Purbaya Yudhi Sadewa also commended it. "Our 5.61 percent growth is above several G20 countries," Airlangga said. Purbaya noted acceleration from prior 5.39 percent and assured ample APBN funds.
