Statistics Indonesia (BPS) reported that the country’s economy grew by 5.61% year-on-year in the first quarter of 2026. The figure slightly exceeded the earlier projection by Finance Minister Purbaya Yudhi Sadewa, who had forecast growth of 5.5% at the start of the year. 

Head of BPS Amalia Adininggar Widyasanti stated that Indonesia’s Gross Domestic Product (GDP) at current prices reached IDR 6,187.2 trillion, while GDP at constant prices stood at IDR 3,447 trillion. 

“Indonesia’s economic growth in the first quarter of 2026, compared to the first quarter of 2025 or on a year-on-year basis, grew by 5.61%,” Amalia said during a press conference on Tuesday (May 5). 

Across sectors, nearly all industries recorded positive annual growth, with the exception of mining as well as electricity and gas supply. Manufacturing, which contributes the largest share to the economy, expanded by 5.04% year-on-year. 

The highest growth was recorded in the accommodation and food services sector, which grew by 13.14%, followed by transportation and warehousing at 8.04%. 

From the expenditure side, government spending recorded the highest growth at 21.81%. Meanwhile, household consumption, which remains the main driver of economic growth, increased by 5.53%. 

Amalia noted that government consumption was driven by higher personnel spending, including the disbursement of the 14th-month salary (holiday allowance), as well as increased spending on goods and services. 

“One of the goods expenditures supporting government spending is the Free Nutritious Meals programme,” she added. 

Globally, several of Indonesia’s key trading partners also showed improved economic performance in the first quarter compared to the previous quarter. China’s economy grew by 5.3% year-on-year, up from 4.5% previously. The United States recorded growth of 2.7%, higher than both the fourth quarter of 2025 and the first quarter of 2025, which each grew by 2%. 

However, some regional economies experienced a slowdown. Malaysia’s growth moderated from 6.3% to 5.4%, Singapore from 5.7% to 4.6%, and Vietnam from 8.5% to 7.8%. 

Amalia also noted that the International Monetary Fund (IMF) projects global economic growth to reach 3.1% this year, slowing from 3.4% in the previous year. 

This article is published in partnership with Katadata 

Original article here