INDEF: High Economic Growth Not Yet Felt in People's Lives

JAKARTA, KOMPAS.com - The Institute for Development of Economics and Finance (INDEF) states that the public perceives a contradiction between the economic growth figure of 5.61 per cent in the first quarter of 2026 and the economic reality they face. This means that Indonesia’s first-quarter 2026 economic growth figure is seen by the public as not yet felt in daily life or not grounded in reality. From INDEF’s analysis, the public feels that the economic growth in the first quarter of 2026 is more influenced by government injections and has not truly reached the grassroots. “Be cautious in this regard, meaning that this growth narrative should not hide a latent danger that, in quotes, is not widely known by the public,” he said during the Public Discussion on Maintaining the Stamina of Indonesia’s Economic Growth, on Monday (11/5/2026). He added that there are five main topics that are the reasons why the first-quarter 2026 economic growth is considered illusory. He explained that some points of concern include high government spending, a weakening rupiah value, unemployment, fleeing foreign investors, and expensive goods prices. Wahyu said that netizens consider this as illusory growth because it is more supported or injected by massive government spending rather than an even increase in public welfare. Wahyu revealed that the public calls the first-quarter 2026 economic growth “infusion growth”. “This means the public is also aware that the 5.61 per cent figure is injected by government spending that surged by 21.81 per cent year-on-year,” he said. Meanwhile, the rupiah exchange rate is instead in a weakening trend amid high economic growth. This weakening rupiah condition is often interpreted by the public as accompanying unemployment levels. “Because the weakening rupiah condition is also often associated by the public with price increases,” he added.