Ramadan and Eid Momentum to Drive 5.5 Percent Economic Growth

JAKARTA, KOMPAS.com - The government is optimistic that the economic growth target for the first quarter of 2026 can be achieved amid the potential for higher inflation compared to last year.

Coordinating Minister for the Economy, Airlangga Hartarto, is optimistic that the 5.5 percent economic growth target can be met.

Airlangga stated that the economic momentum throughout Ramadan and Eid 2026 is expected to contribute to economic growth.

Nevertheless, Airlangga projects that the inflation rate could be higher than in the same period last year.

This is because there is no electricity tariff discount policy in place this year.

“We’ll see later; inflation calculations are quicker anyway. So we’ll just see until the end of Eid. But the base from last year was low,” he added.

Meanwhile, Finance Minister Purbaya Yudhi Sadewa estimates that economic growth could reach 5.7 percent in the first quarter of this year.

That figure is considered quite good amid the current global turbulence.

“Economic growth could be 5.6-5.7 percent, roughly speaking. That’s already pretty good, given the global turbulence now,” he said on the same occasion.

Purbaya said that the impact of the Middle East conflict is being absorbed by the government by ensuring energy subsidies continue to run.

He said the government will continue to ensure that society can carry out activities normally.

“The current global impact is not yet felt because it has been absorbed by the government. So we are really safeguarding so that society can carry out activities normally, and as much as possible, it will be maintained that way going forward,” he stated.