Indonesia's Economy Grows 5.61%: Purbaya References Curse, Airlangga Says It Exceeds Expectations
JAKARTA, KOMPAS.com - Indonesia’s economic performance in early 2026 is assessed as showing strong signals amid global uncertainties.
The government states that the 5.61% economic growth in the first quarter of 2026 is a key milestone, not only exceeding expectations but also marking an acceleration from previous growth trends.
Finance Minister Purbaya Yudhi Sadewa expressed relief after the official data was released. He described the achievement as an indication that the national economy is beginning to emerge from the stagnation pattern around 5%.
“It is clear that we can break free from the curse of 5% economic growth. We are moving towards faster growth,” said Purbaya during the APBN KiTa Press Conference at the Ministry of Finance on (5/5/2026).
However, after the data was announced by the Central Statistics Agency, he expressed satisfaction with the results.
Nevertheless, Purbaya remains cautious about future challenges, particularly due to the global conditions that have not fully recovered.
“All engines or export-oriented companies that can still export will be supported to be more competitive globally,” he explained.
As a follow-up measure, the government is preparing various stimuli to maintain the growth momentum, including developing electric vehicle (EV) incentives to strengthen domestic consumption while promoting industrial transformation.
On the other hand, Coordinating Minister for the Economy Airlangga Hartarto emphasised that the achievement exceeds expectations from various institutions and is higher than that of several G20 member countries.
“Indonesia’s economy is growing well beyond expectations from various institutions, where in the first quarter our economic growth reached 5.61%,” said Airlangga during the Q1 2026 GDP Growth Press Conference at the Coordinating Ministry for the Economy on Tuesday (5/5/2026).
He explained that the growth was driven by a combination of fiscal policies and seasonal momentum such as Ramadan and Eid al-Fitr.
Household consumption grew by 5.52%, while government spending surged by 21.81% or approximately Rp 815 trillion.
Stimuli such as the disbursement of Eid al-Fitr allowances (THR) amounting to Rp 51.65 trillion and transportation fare discounts also served as major driving factors for economic activity in the early year.