Indonesia's Economy Surges 5.61%, Yet Rupiah Weakens to Rp17,425/US$

Jakarta, CNBC Indonesia - The rupiah exchange rate was observed weakening against the US dollar following the release of Indonesia’s first-quarter 2026 economic growth data this afternoon, Tuesday (5/5/2026). According to Refinitiv data, at 11:15 WIB, the rupiah was at Rp17,425/US, depreciatingby0.35. Pressure on the rupiah occurred alongside the announcement by the Central Statistics Agency (BPS) reporting Indonesia’s Gross Domestic Product (GDP) growth for the first quarter of 2026 at 5.61% year-on-year (yoy), higher than market expectations. On a quarterly basis, Indonesia’s economy contracted by 0.77% (quarter-to-quarter/qoq). For note, the market consensus gathered by CNBC Indonesia from 12 institutions/agencies previously projected first-quarter 2026 economic growth at 5.40% yoy. Meanwhile, on a quarterly basis, the economy was estimated to contract by 1.0% qoq. Although the economic growth data was better than expected, the rupiah still could not escape the pressure.