Indonesia Sees Path to 6% Growth After Strong Q1 Performance
TEMPO.CO, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa believes that optimizing the government’s strategic policies will boost economic growth even higher this year, which is expected to reach 6 percent.
This follows the Statistics Indonesia reporting that Indonesia’s economic growth in the first quarter of 2026 reached 5.61 percent year-on-year (yoy).
“We are doing this to maximize the momentum of growth, ensuring it remains unchanged or even improves going forward. We are implementing policies as optimally as possible so that we can continue to grow towards 6 percent this year,” said Minister Purbaya at the APBN KiTa press conference in Jakarta on Tuesday.
The State Treasurer assessed that national economic growth in the first quarter of 2026 will be in line with the growth of several economic sectors in general.
From the demand side, economic activity is predominantly driven by accelerated government spending, increased household consumption, and investment, which is also supported by the acceleration of various Danantara projects.
Meanwhile, on the supply side, increased activity in the manufacturing, trade, agriculture, construction, and accommodation sectors, including food and beverages, is needed to meet domestic and international demand and support the implementation of priority government programs.
“In my opinion, we’ll maximize the 5.61 percent growth. This figure is as good as manufacturing, which grew 5.04 percent, higher than in previous quarters. Trade, related to retail, and purchasing power (also increased),” said Purbaya.
“Household consumption grew 5.52 percent, which is very significant. Previously, it was 4.9 percent, now it’s 5.5 percent, and its contribution to the economy is 54.36 percent. This shows that people’s purchasing power is improving,” he added.
In the housing sector, the Minister of Finance stated that there was growth of 3.54 percent. He confirmed that this growth will be accelerated following various stimulus measures currently being reviewed with relevant stakeholders, such as the Financial Services Authority (OJK).
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