Indonesian Political, Business & Finance News

Indonesia's Economy Grows 5.61% in Q1 2026, Consumption Becomes Key Supporter

| | Source: KOMPAS Translated from Indonesian | Economy
Indonesia's Economy Grows 5.61% in Q1 2026, Consumption Becomes Key Supporter
Image: KOMPAS

JAKARTA, KOMPAS.com — The Central Statistics Agency (BPS) reported that Indonesia’s economic growth in the first quarter of 2026 reached 5.61% year-on-year.

BPS Chief Amalia Adininggar Widyasanti stated that gross domestic product at current market prices amounted to Rp 6,187.2 trillion. Gross domestic product at constant prices was recorded at Rp 3,447.5 trillion.

“Thus, Indonesia’s economic growth in the first quarter of 2025 compared to the first quarter of 2026, or year-on-year, experienced growth of 5.61%,” she said in the BPS release in Jakarta on Tuesday (5/5/2026).

Five main sectors supported the national GDP. These sectors include manufacturing industry, trade, agriculture, construction, and mining. Their total contribution reached 63.52% of GDP.

Several sectors recorded high growth. The provision of accommodation and food and beverages grew 13.14%. This performance was driven by increased activity during national holidays and the expansion of the free nutritious meals programme.

The other services sector grew 9.91%. The drivers came from increased domestic tourist travel and visits by foreign tourists.

Transportation and warehousing also recorded 8.4% growth. The increase in passenger numbers across various modes was the main factor.

From the expenditure side, all components grew positively year-on-year. Household consumption was the largest contributor with a share of 54.36% and grew 5.52%.

Gross Fixed Capital Formation contributed 28.29% with 5.96% growth. These two components provided a combined contribution of 82.65% to GDP.

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