Investment Absorbs Over 700,000 Workers in Early 2026

Indonesia’s economy in early 2026 is assessed to still demonstrate strong performance, with the investment sector serving as the primary driver. Investment contributed 32% to national economic growth in the first quarter of 2026, which reached 5.61%.

Investment realisation for the January-March 2026 period was recorded at Rp498.8 trillion, representing a 7.2% year-on-year (yoy) growth. This figure equates to 24.4% of the Rp2,041.3 trillion investment target by the end of 2026.

Beyond the nominal value, investment in the first quarter of 2026 also succeeded in absorbing 706,569 workers, a 18.9% year-on-year increase, demonstrating that investment has a tangible impact on expanding employment opportunities.

Academic from Esa Unggul University, Iswadi, stated that the first-quarter 2026 economic data shows that investment is no longer merely chasing realisation figures but is beginning to demonstrate quality through its contribution to economic growth and job creation.

“This is an important indicator that the government’s investment policies are on the right track,” Iswadi told Liputan6.com on Sunday (10/5/2026).

The success in maintaining economic growth at 5.61% is also seen as evidence that Indonesia’s economic fundamentals remain strong. Iswadi emphasised that investor confidence remains intact despite challenging global economic dynamics.

“Amid ongoing global challenges full of uncertainty, the 5.61% economic growth achievement and investment realisation of nearly Rp500 trillion in the first quarter is a strong signal that Indonesia has solid economic fundamentals and competitive investment attractiveness,” he said.

He also believes the Rp2,041.3 trillion investment target can be achieved if the government remains consistent in maintaining the business climate. “Consistency in downstreaming policies, bureaucratic reform, and accelerating investment licensing are important foundations,” Iswadi added.

Indonesia’s Economy Grows 5.61% in First Quarter of 2026

Previously, the Central Statistics Agency (BPS) reported that Indonesia’s economy grew 5.61% year-on-year (YoY) in the first quarter of 2026. This growth is higher than the same period in the previous year.

BPS Head Amalia Adininggar Widyasanti explained that the growth was calculated based on Gross Domestic Product (GDP) at current market prices of Rp6,187.2 trillion and at constant prices of Rp3,447.7 trillion.

“Thus, Indonesia’s economic growth in the first quarter of 2026 compared to the first quarter of 2025 or year-on-year (YoY) grew by 5.61%,” said Amalia on Tuesday (5/5/2026).

For comparison, in the first quarter of 2025, Indonesia’s economy grew by 4.87% (YoY). Thus, there was an improvement in economic performance in early 2026.

Although recording positive annual growth, BPS noted that Indonesia’s economy experienced a 0.77% contraction quarter-on-quarter (qtq).

On the global side, the International Monetary Fund projects world economic growth to reach 3.1% in April 2026. Meanwhile, emerging economies are projected to grow by 3.9% compared to the previous year.

The IMF projection also indicates that inflation in emerging countries in 2026 remains relatively higher than global inflation.

Amalia added that several of Indonesia’s trading partner countries also showed varied economic growth dynamics in the first quarter of 2026.

“China grew stronger compared to the fourth quarter of 2025, the US grew stronger compared to the fourth quarter of 2025, while Malaysia, Singapore, and Vietnam grew slower compared to the fourth quarter of 2025 but stronger compared to the first quarter of 2025,” she explained.

BPS records 5.61% economic growth in the first quarter of 2026 as the highest since 2021

The Central Statistics Agency (BPS) notes that the 5.61% economic growth in the first quarter of 2026 quarterly becomes one of the highest in the last five years. Compared to the same first-quarter period, the Indonesian economy from January to March 2026 grew to the largest since 2021.

“If we compare it to year-on-year quarterly economic growth, this is the highest since the second quarter of 2021,” said BPS Head Amalia Adininggar Widyasanti on Tuesday (5/5/2026).

It is known that third-quarter 2021 economic growth surged to 7.08% after experiencing a long contraction during the early Covid-19 pandemic in 2020.

“Now, if we look at the first quarter of 2026, the economy grew by 5.61%, the highest. In the first quarter from 2021-2026, it has never exceeded 5.61%,” Amalia added.

“In the third quarter of 2023, it was 5.73%. Compared to previous first quarters, this is relatively very good compared to the previous ones,” she emphasised.

The January-March 2026 economic growth is higher than the same period in the previous year (first quarter of 2025), which recorded growth of 4.87% (YoY).

Although growing positively on an annual basis, BPS reported that Indonesia’s economy quarter-on-quarter (qtq) recorded a 0.77% contraction.