Indonesia's Economy Grows 5.61% in Q1, Driven by Household Consumption!

Jakarta, CNBC Indonesia - The Central Statistics Agency (BPS) recorded Indonesia’s economic growth at 5.61% year-on-year in the first quarter of 2026. This growth is higher than the 4.87% in the first quarter of 2025 and also exceeds the 5.39% in the fourth quarter of 2025. According to CNBC Indonesia’s findings, this economic growth is the highest since the third quarter of 2022. BPS Chief Amalia Adininggar Widyasanti stated that this economic growth was mainly supported by public consumption. “All expenditure components grew positively. The largest contribution came from household consumption at 54.36%, growing 5.52%,” she said. Amalia explained that household consumption strengthened due to religious holidays and public mobility. Household subcomponents were driven by growth in restaurants and hotels at 7.38%, as well as transportation and communication at 6.91%. In addition, economic growth in this first quarter was also supported by gross fixed capital formation excluding construction (PMTB). This component contributed 28.29%, growing 5.96%. “The total contribution of both is 82.65% to total GDP,” said Amalia. From the business field perspective in the first quarter of 2026, all business fields grew positively except for mining and the provision of electricity and gas. “Major contributions from manufacturing industry, trade, agriculture, construction, and mining cover 53.2% of GDP. High growth in accommodation and food and beverage provision at 13.14% due to Eid al-Fitr and national holidays,” she said. Meanwhile, transportation and warehousing grew 8.04%. Amalia revealed that other services grew 9.91% due to increased domestic tourist travel and inbound foreign tourist visits. BPS noted that, in terms of growth sources in the first quarter of 2026, the manufacturing industry business field grew 1.03 basis points. Additionally, the trade business field grew 0.82 basis points, agriculture 0.55 basis points, and construction 0.53 basis points.