Economy Growing or Merely Boosted? - Kontan Insight

KONTAN.CO.ID - JAKARTA. The figure of 5.61% sounds encouraging. That is the picture emerging from the Central Statistics Agency’s release on Indonesia’s economic growth in the first quarter of 2026. Amid the global economic slowdown and geopolitical uncertainties, this achievement seems to affirm that Indonesia’s economy remains resilient. However, behind this optimism, a more fundamental question arises: Is our economy truly growing from its internal strengths, or is it merely propelled by a combination of seasonal factors and short-term policy stimuli?

Upon closer examination, the structure of growth in the early part of this year remains very familiar. Household consumption has once again become the main driver. This is nothing new, but rather a pattern that has long been characteristic of Indonesia’s economy. The momentum of Ramadan and Idul Fitri almost always brings a surge in consumption, both through increased spending on food, clothing, transportation, and other services.