Indonesia's Economy Grows 5.61%, Government Claims Victory Over US and China
JAKARTA, KOMPAS.com - Coordinating Minister (Menko) for the Economy Airlangga Hartarto reported the positive performance of the national economy in the first quarter of 2026 to President Prabowo Subianto.
Airlangga stated that Indonesia’s economic growth reached 5.61%, which is one of the highest among G20 countries, even surpassing the United States.
“So we are above China, above Singapore, South Korea, Saudi Arabia, even the US. And this growth is above the expectations of various institutions, which usually average around 5.2,” Airlangga said during a press conference at the Palace in Jakarta on Tuesday evening (5/5/2026).
Airlangga explained that the growth was supported by significant increases in household and government consumption, as well as positive export and import performance.
“In terms of exports and imports, it is also positive. In terms of business fields, the industrial sector, trade sector, government administration, other services, transportation and warehousing, agriculture, and construction are also performing well,” he clarified.
From the macroeconomic indicators perspective, the government recorded several achievements indicating maintained economic stability.
According to Airlangga, inflation has been successfully contained, consumer confidence remains high, and the trade balance continues to record a surplus.
“In terms of macroeconomic indicators, inflation has also been successfully contained at 2.42%, down from 3.48% in the previous period, in March,” said Airlangga.
“Then credit growth at 9.49%, third-party funds meaning high public trust at 13.55%,” he added.
In addition, the government also reported developments in regulations related to export proceeds from natural resources (DHE SDA), which will soon be implemented.
“So the revision to Government Regulation 36 has been finalised and will take effect from 1 June 2026. The change is that DHE SDA must enter Himbara banks and be converted to rupiah up to a maximum of 50%, and also related to the extractive sector or oil and gas, it applies as it is now, namely a 3-month period,” Airlangga added.