Jakarta. Indonesia’s economy expanded 5.61% year-on-year in the first quarter of 2026, marking its fastest growth in five years, as strong domestic consumption and rising investment helped offset global uncertainty.

Finance Minister Purbaya Yudhi Sadewa welcomed the data released by the Central Statistics Agency (BPS), noting that the figure exceeded the government’s 5.5% target and improved from 5.39% growth in the fourth quarter of 2025.

“Target achieved, so I can relax for a moment -- I couldn’t sleep last night,” Purbaya said during a press conference in Jakarta.

According to BPS, the surge in household consumption during Ramadan and the Idul Fitri holiday period was the main driver of growth, reflecting resilient domestic demand.

Purbaya said the performance was particularly encouraging given ongoing global challenges, including geopolitical tensions in the Middle East and elevated energy prices. However, he cautioned that risks remain and emphasized the need to sustain domestic consumption going forward.

BPS head Amalia Adininggar Widyasanti said the early-2026 expansion was underpinned by strong domestic activity, especially household spending.

Government policies -- such as holiday bonuses, transportation discounts, and inflation control measures -- also helped preserve purchasing power, she added.

In nominal terms, Indonesia’s gross domestic product (GDP) reached Rp 3,447.7 trillion ($197.9 billion) in constant prices and Rp 6,187.2 trillion ($355.1 billion) in current prices during the first quarter.

Investment Gains Momentum
Investment also played a growing role in supporting economic growth at the start of the year.

Investment Minister Rosan Roeslani said investment contributed around 32% to overall growth, equivalent to approximately 1.8 percentage points.

“From the investment side, it contributed 32% of the total 5.61% growth, or about 1.8 percentage points,” Rosan said, noting that the share has risen from around 28–29% in previous periods.

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