Minister of Finance Purbaya Targets Economic Growth of 5.5 to 6 Percent in the First Quarter of 2026

JAKARTA - Minister of Finance (Menkeu) Purbaya Yudhi Sadewa feels optimistic that Indonesia's economic growth will be in the range of 5.5 to 6 percent in the first quarter of 2026 on an annual basis (year-on-year). Menkeu Purbaya Targets Economic Growth of 5.5-6 Percent in the First Quarter of This Year.

For your information, this figure is much higher than 4.48 percent in the same period last year. This was conveyed by Minister of Finance Purbaya at the APBN Kita press conference, Monday, February 23.

According to the Minister of Finance Purbaya, Indonesia's manufacturing index (PMI) which has been in the expansion zone for six consecutive months, illustrates the robustness of macroeconomic indicators since the beginning of the year. To maximize this momentum, the government targets the realization of state spending of Rp. 809 trillion in the first quarter to encourage people's purchasing power.

As part of the spending, the government allocated Rp62 trillion for the Free Nutritious Meal (MBG) program. In addition, the government has prepared Rp55 trillion for the Eid Allowance (THR) for 10.5 million recipients, including ASN, TNI, and Polri, which is planned to be disbursed in the first week of Ramadan.

Then, the government also prepared an economic stimulus package worth Rp. 15 trillion, including discounts on transportation fares and food assistance in the form of 10 kilograms of rice and two liters of cooking oil for 35.04 million beneficiary families.

In addition to fiscal policies and increased consumer optimism, economic growth in the first quarter is also expected to be driven by seasonal factors, namely the Chinese New Year and Eid al-Fitr celebrations, which have historically always boosted demand for goods and services.

Minister of Finance Purbaya added that the momentum of holidays and holidays together, as well as the work from anywhere (WFA) policy, also supported people's consumption activities in the first quarter of 2026.