Q1 2026 Economic Growth Highest in Last Five Years

Jakarta (ANTARA) - The Central Statistics Agency (BPS) stated that Indonesia’s economic growth in the first quarter of 2026 was the highest in the last five years. BPS recorded economic growth reaching 5.61% year-on-year (yoy). “If we look at the first quarter of 2026 at 5.61%, that is the highest growth,” said BPS Head Amalia Adininggar Widyasanti during a press conference in Jakarta on Tuesday. Historically, first-quarter economic growth in the last five years had contracted in 2021 by minus 0.69%. “In the first quarter, if we look from 2021 to 2026, it has never exceeded 5.61% economic growth,” she explained. Meanwhile, on a quarter-to-quarter (qtq) basis, Indonesia’s economy in the first quarter of 2026 experienced a contraction of 0.77% compared to the fourth quarter of 2025. From the expenditure side, household consumption remains the main contributor to economic growth with a contribution of 2.94%. In addition, various inflation control policies and government stimulus supported consumption, including transport ticket discounts, provision of holiday allowances (THR) or 13th-month salary, as well as the Bank Indonesia reference rate or BI rate at 4.75%. Besides household consumption, the Gross Fixed Capital Formation (PMTB) component grew solidly by 5.96%, driven by government investment in national priority projects and private investment. Meanwhile, government consumption grew significantly by 21.81%, in line with increased realisation of employee expenditure through THR payments as well as goods and services spending, including the Free Nutritious Meals (MBG) programme.