Economic Growth Amid the Shadow of Global Conflicts

Indonesia’s economic growth reached 5.61% year-on-year in the first quarter of 2026, exceeding projections from several economists. This figure reflects the resilience of domestic demand, but the rupiah’s exchange rate pressures and rising production costs are casting shadows over the business world. The Central Statistics Agency (BPS) stated that the figure was derived from the Gross Domestic Product (GDP) at current market prices of Rp6,187.2 trillion and at constant prices of Rp3,447.7 trillion. However, growth contracted by 0.77% quarter-on-quarter.