State-Owned Enterprises' Expansion Supports Economy in Q1 2026
REPUBLIKA.CO.ID, JAKARTA – State-owned enterprises are seen as one of the pillars of national economic growth in the first quarter of 2026. The expansion of state spending and the activities of red-plate corporations also help maintain economic stability amid global pressures.
Head of the Center of Macroeconomics and Finance at INDEF, Rizal Taufikurrahman, stated that the contribution of SOEs is evident through infrastructure spending, the energy sector, banking, and various ongoing government strategic projects.
“The growth of 5.61 percent cannot be separated from the role of state spending expansion and large corporate activities, including SOEs, which have long been the main driver of various government projects,” Rizal said in Jakarta on Wednesday (13/5/2026).
Rizal explained that in a global environment still full of pressures, SOEs function as a shock absorber to maintain investment, liquidity, and domestic economic stability. However, he cautioned that growth that is too dependent on SOEs and government spending also carries risks to fiscal health and the quality of economic growth.
He noted that several SOEs are still facing pressure from leverage, assignment burdens, and declining efficiency due to being too frequently used as instruments of economic policy.
“If not careful, SOEs could instead experience crowding out of the private sector and create illusory or unhealthy growth because it is too supported by fiscal expansion and debt,” he continued.
Rizal stated that the contribution of SOEs should not only be measured by the size of projects or investments, but also by the multiplier effects on the domestic industry, the creation of productive jobs, industrial downstreaming, and strengthening the national supply chain.
According to Rizal, SOEs need to play a role as catalysts for industrialisation and economic productivity improvement, not just as implementers of government projects.
“Governance, efficiency, business discipline, and partnerships with the private sector must also be strengthened so that the contribution of SOEs truly creates quality and sustainable economic growth,” Rizal said.