Indonesia's Economy Grows 5.61%, Airlangga: Highest Among G20 Countries

Indonesia’s economy grew by 5.61% in the first quarter of 2026. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that this growth rate surpasses that of several G20 countries. “Our 5.61% growth is above several G20 countries. Indeed, from the G20, India has not yet released its figures. But among the countries that have, including China, Singapore, South Korea, Saudi Arabia, and the United States, we have the highest,” said Airlangga during a press conference at the Coordinating Ministry for Economic Affairs office in Jakarta on Tuesday (5/5/2026). Airlangga explained that the current economic growth is inseparable from various government policies and the occurrence of major religious holidays. The impact of these policies also influences public consumption, which serves as the main driver of Indonesia’s economic growth. “We see that household consumption remains the primary driver with 5.52% growth, and this further confirms that the momentum from Ramadan and Eid al-Fitr, as well as the high increase in mobility, has boosted it,” Airlangga clarified. In addition, government spending, which grew by 21.81% in the first quarter of 2026, was also cited by Airlangga as a lever for the national economy. “In the first quarter, we also see government spending growing high at 21.81%, where this figure is around Rp 815 trillion. This is above the historical average,” Airlangga stated. The government programmes that Airlangga mentioned as factors in this growth include ministry and agency spending programmes, such as the free nutritious meals (MBG) with a realisation of Rp 51 trillion up to March. Then, stimulation from tariff discounts, holiday allowances (THR) for civil servants realised at Rp 51.65 trillion, as well as THR from the private sector and to online motorcycle taxi drivers.