JAKARTA - The Indonesian economy in the first quarter of 2026 recorded growth of 5.61 percent year on year (yoy).
This figure exceeds the estimates of a number of institutions, although global conditions are still fluctuating.
Coordinating Minister for the Economy Airlangga Hartarto said that in the midst of an unstable global situation, Indonesia's economic performance actually showed better results than expected.
"In the midst of global dynamics that are still looking for a new balance, Indonesia's economy has grown well beyond the expectations of various institutions, where in the first quarter our economic growth reached 5.61 percent," he said in a press conference, Tuesday, May 5.
According to him, the economic growth in the first quarter of 2026 was the highest compared to several G20 member countries that have released their data.
Airlangga said that although data from India is not yet available, Indonesia is still ahead of other countries such as China, Singapore, South Korea, Saudi Arabia, and the United States.
He said that economic growth at the beginning of this year was mainly driven by domestic activities and from the expenditure side, household consumption remained the largest contributor to gross domestic product (GDP), with growth of 5.52 percent.
Airlangga explained that this increase is inseparable from the momentum of Ramadan and Eid al-Fitr, which encourages community mobility and economic activity significantly.
He added that other sources of growth came from Gross Fixed Capital Formation (PMTB) which grew 5.96 percent, supported by government investment, including construction in the framework of national priority programs.
Meanwhile, government consumption recorded the highest growth among all expenditure components, namely 21.81 percent.
"This is above the historical average and of course this is driven by several ministry and agency spending programs, including MBG, then the stimulation from tariff discounts, THR," he said.
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