{
    "success": true,
    "data": {
        "id": 1740013,
        "msgid": "indonesia-records-strong-growth-as-spending-rises-21-81-per-cent-economist-1778781560",
        "date": "2026-05-14 22:54:19",
        "title": "Indonesia records strong growth as spending rises 21.81 per cent: Economist",
        "author": "",
        "source": "ANTARA_EN",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's economy grew by 5.61 per cent in the first quarter of 2026, the highest in five years, driven significantly by a 21.81 per cent surge in government spending reaching Rp815 trillion. Economist Astuti highlighted the role of fiscal policy in boosting aggregate demand, job creation, and GDP, urging effective allocation to maximize multiplier effects in sustainable investments and productive sectors. While government consumption, including Eid bonuses and the Free Nutritious Meals programme, propelled this growth, she cautioned that it may not sustain long-term economic prospects.",
        "content": "<p>When contacted in Jakarta on Thursday, she noted that government\nspending, which reached Rp815 trillion (approximately US$46.4 billion)\nin early 2026, highlights the significant role of fiscal policy.<\/p>\n<p>She explained that expansive government spending is generally\ndesigned to boost aggregate demand, create jobs, and drive growth in\nreal Gross Domestic Product (GDP), which can fast-track national\ndevelopment if distributed effectively.<\/p>\n<p>Astuti urged the government to maximize the multiplier effect of\npublic spending, emphasizing that funds sourced from taxes and debt\nissuance should be more effectively directed toward creating sustainable\ninvestment, generating jobs, and providing incentives for productive\nsectors.<\/p>\n<p>Regarding future economic prospects, she noted that government\nspending still has the potential to drive the economy, though not in the\nlong-term.<\/p>\n<p>Statistics Indonesia (BPS) recorded that Indonesia\u2019s economic growth\nstood at 5.61 percent in the first quarter of 2026, with the increase in\ngovernment spending cited as one of the driving factors.<\/p>\n<p>This marked the highest growth in the past five years. Historically,\nfirst-quarter economic growth over the last five years saw a contraction\nof 0.69 percent in 2021.<\/p>\n<p>BPS also noted that the 21.81-percent growth in government\nconsumption was driven by an increase in personnel spending through the\npayment of Eid holiday bonuses, as well as spending on goods and\nservices, including the Free Nutritious Meals (MBG) program.<\/p>\n<p>Related news: Indonesia\u2019s economy remains stable amid global\nvolatility: KSSK<\/p>\n<p>Related news: Indonesia\u2019s Q1 2026 growth hits 5.61 pct, highest in\nG20: Kadin<\/p>\n<p>Related news: Indonesia sees Q3-Q4 2026 growth above 5.5 percent<\/p>\n<p>Translator: Ahmad Muzdaffar, Raka Adji<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indonesia-records-strong-growth-as-spending-rises-21-81-per-cent-economist-1778781560",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}