Business Leaders Praise Indonesia's 5.61% Economic Growth, Impact of MBG Programme and 3 Million Houses Project
Jakarta, CNBC Indonesia - Indonesia’s economy, which grew by 5.61% in the first quarter of 2026, has received a response from Anindya Novyan Bakrie, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin). He stated that this achievement is the result of well-executed government programmes.
“Accelerated government spending since January, the massively implemented free nutritious meals programme (MBG) worth up to Rp80 trillion, the aggressive construction of 3 million houses, and several other priority programmes have contributed to boosting economic growth. Likewise, direct investment activities that have been running since the beginning of the year,” Anindya said in his statement, quoted on Wednesday (6/5/2026).
“Indonesia’s economic growth of 5.61% amid deteriorating global conditions is an extraordinary achievement. We appreciate the government’s performance. Government programmes implemented since early 2025 are starting to show results this year,” he added.
Moreover, he continued, Indonesia’s first-quarter 2026 economic growth of 5.61% is the highest among G20 member countries. China’s economy grew by 5%, Singapore by 4.6%, South Korea by 3.6%, Saudi Arabia by 2.8%, and the US by 2.8%.
“This is a proud achievement,” he said.
Kadin, according to Anindya, will continue to work with the government, support, and fully participate in all programmes.
“To boost economic growth and create equitable prosperity for all Indonesian people, from Sabang to Merauke,” he remarked.
Causes of Indonesia’s Economy Accelerating to 5.61%
Anin assessed that the improvement in national economic performance is not only supported by government spending and domestic consumption. It is also marked by the opening of new export markets and increasing investment flows, including medium-scale ones that are starting to spread to regions.
“Lately, we have succeeded in opening new export markets. Although just starting, the impact is already visible, including on incoming investments,” he said.
“At the same time, the influx of investments is becoming more diverse, not only dominated by large projects, but also medium-scale investments that have the potential to drive regional economies. It is also starting to target broader sectors,” he explained.
On the other hand, he said, the MBG programme has emerged as one of the new engines of Indonesia’s economic growth in the first quarter of 2026.
At the same time, he said, as a strategic instrument to promote economic equity in various regions.
“This programme shows how targeted government spending can create a chain effect, boosting consumption, creating jobs, strengthening the real sector, and accelerating economic equity,” he emphasised.
“In the context of a global economy still full of uncertainty, this programme becomes one of the important foundations for Indonesia to maintain inclusive and sustainable growth,” Anindya said.
Furthermore, Anindya proposed that regional transfer funds, which have been cut over the past year, need to be gradually increased again.
“Local governments that have shown good performance need to be given incentives by increasing regional transfer funds. Regional transfer funds are very important in driving the economy, especially micro, small, and medium enterprises (MSMEs) in the regions,” Anindya said.