Household Consumption a Key Driver of Economic Growth Amidst Rupiah Weakness

According to Kompas.com, Finance Minister Purbaya Yudhi Sadewa stated that household consumption is the main pillar of economic growth. This indicates that the purchasing power of the Indonesian people remains strong even when the Rupiah weakens. Household consumption contributed 2.94 percent to the total economic growth of 5.61 percent in the first quarter of 2026. This was followed by investment, which contributed 1.79 percent, and then government spending, which contributed 1.26 percent. The structure of economic growth is based on the contribution of each sector to Gross Domestic Product (GDP). “From these calculations, household consumption is the main driver of national economic growth,” he explained. The government continues to strive to strengthen the synergy of fiscal and monetary policies, including strengthening the Rupiah exchange rate. The main goal is to maintain people’s purchasing power. It weakened by 70 points or 0.40 percent. The weakening of the Rupiah has an effect on increasing food prices, especially soybeans, which are the main ingredient in making tofu and tempeh. Currently, Indonesia imports 85 percent of its soybean needs, mainly from the United States.