Indonesia's Economy Grows 5.61%, Kadin Praises Government

Kadin Indonesia’s General Chairman Anindya Novyan Bakrie stated that Indonesia’s economic growth rate in the first quarter of 2026, reaching 5.61%, is inseparable from the government’s programmes executed quite well. Anin highlighted the acceleration of government spending since January, the massive implementation of the Free Nutritious Meals (MBG) programme up to Rp 80 trillion, aggressive construction of three million homes, and several other priority programmes that have propelled economic growth. “We appreciate the government’s performance. Government programmes implemented since early 2025 are starting to show results this year,” Anin said in a written statement in Jakarta on Wednesday (6/5/2026). Anin noted that Indonesia’s 5.61% economic growth amid deteriorating global conditions is an extraordinary achievement that deserves appreciation. Kadin, he continued, will continue to collaborate with the government, support, and fully participate in all programmes to boost economic growth and create equitable prosperity for all Indonesian people. “Indonesia’s first-quarter 2026 economic growth rate of 5.61% is the highest achievement among G20 member countries,” Anin added. In the same period, he continued, China’s economy grew 5%, Singapore 4.6%, South Korea 3.6%, Saudi Arabia 2.8%, and the United States 2.8%. “This is a proud achievement,” Anin said. Anin stated that Indonesia’s first-quarter 2026 economic growth rate of 5.61% indicates an improvement in the investment climate in Indonesia. Anin assessed that the improvement in national economic performance is not only supported by government spending and domestic consumption but is also marked by the opening of new export markets and increasing investment flows, including from medium-scale investments starting to spread to regions. “Efforts to open new export markets, although still in the early stages, are already having an impact amid various global challenges,” he said. Investment Also Contributes At the same time, Anin assessed that the influx of investment is becoming increasingly diverse, not only dominated by large projects but also medium-scale investments that have the potential to drive regional economies. Anin added that the current developing investments are not only large-scale but are also starting to target broader sectors and regions. According to Anin, the next challenge is to ensure that these investments continue to flow to the regions through strengthened coordination and cooperation between the central and regional governments. Only then will economic growth not be concentrated in the centre but spread more evenly to various regions. “Going forward, it remains about discussions with regional governments so that regional investments can be increased and regions can advance. Economic growth must also occur in the regions,” Anin revealed.