Hippindo Says Q1 Economic Surge Supported by Seasonal Momentum

The Chairman of the Indonesian Retailers and Shopping Centre Tenants Association (Hippindo), Budihardjo Iduansjah, believes that Indonesia’s economic growth of 5.61 per cent in the first quarter of 2026 is influenced by seasonal factors driving public consumption. Economic activity has increased in line with the proximity of several major holidays from the end of 2025 to the beginning of this year.

“Yes, that’s because there are so many events, from December there is Chinese New Year, Eid, Nyepi all piling up, so the economic circulation, consumption is running and there is THR,” said Budihardjo when contacted by Republika in Jakarta on Wednesday (6/5/2026).

Budihardjo explained that, besides seasonal momentum, economic movement is also driven by the implementation of various government priority programmes that began operating at the start of the year. The implementation of these programmes is seen as contributing to increased money circulation in society.

“That coincides with the government’s stimulus programmes that are starting to move, from the Merah Putih cooperative building things—there are tens of thousands, many people working, the kitchen (MBG), and also housing construction,” said Budihardjo.

However, Budihardjo warns of the risk of consumption slowdown after the holiday period ends. According to him, the government needs to prepare follow-up steps to maintain the economic growth momentum.

“That means all programmes are moving, retail is moving, consumption is moving. This should be good, but it will be dangerous after this Eid; something like stimulus or whatever must be done,” said Budihardjo.