Economy Grows by 5.61 Percent, Purbaya: The 5 Percent Curse Has Been Overcome

Indonesia’s economy recorded positive performance at the start of the year. Economic growth in the first quarter of 2026 reached 5.61 percent year-on-year (yoy), exceeding the trend that had persisted around 5 percent. Finance Minister Purbaya Yudhi Sadewa views this achievement as an important turning point. He states that Indonesia is beginning to break free from the pattern of growth that has struggled to surpass the 5 percent mark. “It is clear that we can escape the curse of 5 percent growth,” Purbaya said during the APBN KiTa press conference on Tuesday (5/5/2026). He admitted to waiting tensely before the official data was announced. However, the results exceeding expectations brought him relief. “Once the target was achieved, I became more at ease,” he said. Data from the Central Statistics Agency (BPS) shows that household consumption remains the main pillar of the economy, contributing 54.36 percent to gross domestic product (GDP). Public spending activity is assessed to remain stable amid various global pressures. BPS Chief Amalia Adhininggar Widyasanti stated that the highest growth came from government consumption, which jumped 21.81 percent in the first quarter of 2026. “Driven by THR payments, goods and services spending, and programmes distributed to the public,” said Amalia. She explained that the disbursement of the 14th salary or holiday allowance (THR) as well as assistance programmes such as Free Nutritious Meals also strengthened economic circulation in society. In addition, investment reflected in Gross Fixed Capital Formation (PMTB) also contributed to growth. This increase in investment indicates ongoing business activity and development. This early-year achievement gives hope to the public for the continuity of economic recovery. However, maintaining the growth momentum to remain stable throughout the year is the next task for the government.