Government Spending and Consumption Drive Early 2026 Economic Growth

JAKARTA – Public consumption and government spending have become the main pillars of economic growth at the beginning of the year. The distribution of holiday allowances (THR) and fiscal stimuli have ensured that money circulation in society remains stable. Coordinating Minister for the Economy, Airlangga Hartarto, stated that the economy’s performance in the first quarter indicates a positive trend amid global uncertainties. “Growth in the first quarter is quite good. It is supported by household consumption, THR distribution, as well as accelerated spending and stimuli reaching Rp 809 trillion,” Airlangga said during the First Quarter Realisation Briefing 2026 & Implementation of KBLI 2025 in Jakarta on Thursday (23/4/2026). He mentioned that the government predicts the economy’s pace at the start of the year to be above five per cent. “Several times we have predicted that growth in the first quarter is fundamentally relatively good, and the figure, if there are no protests, is greater than or equal to 5.5 per cent,” he said. Nevertheless, global dynamics still need to be monitored, including fluctuations in energy prices and geopolitical uncertainties that could potentially affect the economy.