Purbaya Denies That 5.61% Economic Growth is Merely Due to Low Base Effect

JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa has denied the notion that Indonesia’s economic growth of 5.61 per cent in the first quarter of 2026 is influenced solely by the low base effect from the previous year.

According to Purbaya, the economic growth at the beginning of this year is the result of the government’s strategy to maintain liquidity and accelerate state spending.

These steps were taken to ensure a more even economic circulation throughout the year.

“If we look at year-on-year figures, the seasonal effects should almost disappear. So it’s not just a low base. Clearly, the growth is faster, and this continues the faster growth from the fourth quarter of last year,” Purbaya said during a media briefing at the Ministry of Finance on Monday (11/5/2026).

However, in annual calculations, such seasonal impacts are deemed not too dominant.

Therefore, he assesses that the current economic growth trend indicates a clear upward direction.

“If you look at it, the trend is clearly rising. That’s what we’re maintaining and will continue to promote going forward,” he said.

Purbaya also responded to criticisms from several economists questioning the quality of the first quarter’s economic growth this year.

According to him, such criticisms do not fully consider the fiscal policies implemented by the government since the beginning of the year.

“So if the numbers are bad, there’s an uproar, and if the numbers are high, there’s an uproar too,” he stated.

The measures taken include accelerating fertiliser subsidy payments, payments of obligations to PT Pertamina (Persero), and accelerating government spending in various regions.

“I’m maintaining liquidity so that the private sector can move. I’m encouraging government spending in the first quarter to be accelerated so that the economic drive is more even throughout the year,” he explained.