{
    "success": true,
    "data": {
        "id": 1725452,
        "msgid": "economy-grows-5-61-per-cent-but-not-all-sectors-feel-the-impact-1778208912",
        "date": "2026-05-08 08:40:00",
        "title": "Economy Grows 5.61 Per Cent, But Not All Sectors Feel the Impact",
        "author": "Aprillia Ika",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's economy expanded by 5.61 per cent year-on-year in the first quarter of 2026, reflecting strong growth, though quarterly contraction of 0.77 per cent highlights a more nuanced picture due to seasonal factors. Household consumption grew by 5.52 per cent, investment rose by 5.96 per cent, and government spending surged by 21.81 per cent, but challenges such as price pressures, rupiah depreciation, rising energy costs, and manufacturing weakness\u2014evidenced by a PMI of 49.1\u2014temper the optimism. Government priority programmes like MBG and Kopdes Merah Putih have boosted construction investment, yet their contribution remains proportional within broader drivers like infrastructure projects and private investments.",
        "content": "<p>JAKARTA, KOMPAS.com - Bank Permata\u2019s Chief Economist Josua Pardede\nassesses that Indonesia\u2019s 5.61 per cent annual economic growth in the\nfirst quarter of 2026 still reflects a robust economic expansion.<\/p>\n<p>However, behind this figure, conditions on the ground are not yet\nfully felt evenly across all business sectors and societal groups.<\/p>\n<p>\u201cAnnual growth compares Q1 2026 with Q1 2025, which had a relatively\nlow base, making the yearly figure appear strong. Meanwhile, quarterly\ncontraction compares with Q4 2025, which is typically high due to\nyear-end spending and project realisations,\u201d he told Kompas.com on\nFriday (8\/5\/2026).<\/p>\n<p>According to Josua, the high annual growth does not contradict the\n0.77 per cent quarterly economic contraction. He explains that both data\npoints use different comparison bases.<\/p>\n<p>Household consumption was recorded at 5.52 per cent growth,\ninvestment or gross fixed capital formation (GFCF) rose 5.96 per cent,\nwhile government consumption jumped 21.81 per cent.<\/p>\n<p>However, he warns that real conditions on the ground are more\ncomplex. Price pressures, rupiah weakening, and rising energy costs are\nbeginning to burden households and the business world.<\/p>\n<p>\u201cSignals from the manufacturing sector in April also show weakness,\nwith the manufacturing PMI dropping to 49.1 and raw material cost\npressures rising to the highest level in four years due to the Middle\nEast conflict,\u201d he said.<\/p>\n<p>Meanwhile, construction and building investments are also driven by\ngovernment capital expenditure for priority programmes such as MBG and\nKopdes Merah Putih.<\/p>\n<p>\u201cThese programmes require kitchens, warehouses, distribution\nfacilities, supporting buildings, equipment, and logistics networks,\u201d he\nsaid.<\/p>\n<p>Nevertheless, Josua reminds that the contribution of MBG and Kopdes\nMerah Putih to national investment must be placed in proper\nproportion.<\/p>\n<p>According to him, gross fixed capital formation (GFCF) overall is\nstill more influenced by infrastructure projects, private investments,\nproperty development, and spending on machinery and production\nequipment.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/economy-grows-5-61-per-cent-but-not-all-sectors-feel-the-impact-1778208912",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}