Airlangga Optimistic that Indonesia's Economy Will Grow 5.5 Percent in Q1 2026 Thanks to Lebaran

JAKARTA - The momentum of Ramadan and Eid al-Fitr 2026 is believed to be the main driver of national economic growth. The government is optimistic that the 5.5 percent growth target for Q1-2026 can be achieved, in line with the increase in public consumption during that period. Coordinating Minister for the Economy Airlangga Hartarto stated that the economic vibrancy during Ramadan serves as a positive signal for meeting that target. The rise in public consumption from Ramadan to Eid al-Fitr is the primary factor propelling economic growth. Spending on basic needs, transportation, and the tourism sector experiences a significant surge, which directly impacts national economic activity. This momentum consistently drives economic growth at the start of each year. Nevertheless, the government notes the potential for higher inflation compared to the same period last year. This is due to the absence of the 50 percent electricity tariff discount programme that previously applied until February 2025.