Finance Minister Purbaya: 5.61% Growth Indicates Sustained Purchasing Power
The largest contributor to economic growth is household consumption. This indicates that the public’s purchasing power remains strong and is growing significantly.
Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa stated that the national economic growth reaching 5.61% in the first quarter of 2026 shows that the public’s purchasing power is still maintained.
“The largest contributor to economic growth is household consumption. This indicates that the public’s purchasing power remains strong and is growing significantly,” said Purbaya in a written statement in Jakarta on Thursday.
The State Treasurer explained that understanding the structure of economic growth needs to be viewed based on the contribution of each component to the Gross Domestic Product (GDP).
“The contribution to growth is calculated from the growth of each component multiplied by its share in the economy. From that calculation, household consumption becomes the main pillar of national economic growth,” he said.
Household consumption is the main contributor to economic growth with a contribution of 2.94%.
According to the Central Statistics Agency (BPS), the performance of household consumption was mainly driven by increased population mobility during national holidays and major religious events such as Nyepi and Eid al-Fitr.
In addition, various inflation control policies and government stimuli also boosted consumption, including transport ticket discounts, the provision of THR or 14th-month salary, and setting the BI rate at 4.75%.
Besides household consumption, Gross Fixed Capital Formation (PMTB) or investment contributed 1.79% to economic growth. This figure was driven by government investment, including construction related to national priorities, and private investment.
On the other hand, government spending contributed 1.26% to the first quarter’s growth performance, with growth of 21.81%.
The Finance Minister conveyed that the government spending growth at the beginning of the year is part of the strategy to accelerate state expenditure so that the economic impact can be felt more evenly throughout the year.
According to him, the government’s spending pattern, which previously tended to be concentrated at the end of the year, is now directed to be realised earlier so that it can support economic activities more optimally.
The government is also continuing to implement synergies between fiscal and monetary policies to maintain the momentum of economic growth and strengthen public purchasing power.
Such steps are taken, among others, through accelerating the realisation of ministry/institution spending and implementing various national priority programmes from the beginning of the year.