Indonesia’s economy grew 5.6% in first quarter

Indonesia’s economy grew 5.6% in first quarter

Statistics Indonesia (BPS) head Amalia Adininggar Widyasanti said household expenditure was the biggest contributor to the 2026 growth figure.

Indonesian President Prabowo Subianto gestures while delivering a speech in front of thousands of workers during the Labour Day rally celebrations at the National Monument (Monas) in Jakarta on May 1, 2026. (Photo by BAY ISMOYO / AFP)
Prabowo Subianto gestures while delivering a Labour Day speech at the National Monument (Monas), as his government seeks to boost growth through higher public spending. (AFP pic)
JAKARTA:
Indonesia’s economy grew 5.6 percent year-on-year in the first quarter of 2026, the national statistics agency said Tuesday, topping the government’s own forecast despite the impact of the Middle East war.

The reading also exceeded the 5.4 percent recorded in the final three months of 2025, Statistics Indonesia (BPS) head Amalia Adininggar Widyasanti told reporters in Jakarta.

In the first quarter of 2025, gross domestic product had come in at under five percent.

Household expenditure was the biggest contributor to the 2026 growth figure, said Amalia.

The government of President Prabowo Subianto is aiming to raise the Southeast Asian economy’s growth rate from 5.1 percent last year to eight percent by 2029, powered by high public spending.

Amalia said Tuesday government expenditure grew more than 21 percent in the first quarter compared to a year earlier.

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