Jakarta. Indonesia’s economy accelerated by 5.61% year-on-year (yoy) in Q1 2026 amid Iran war uncertainties, the statistics bureau revealed Tuesday, topping expectations.

Growth had shrunk by 0.77% from the previous quarter, data showed. The January-March growth exceeded the 4.87% that Southeast Asia’s biggest economy had booked in the same three-month period of last year. Speaking at a press briefing on Tuesday, BPS chief Amalia Adininggar Widyasanti attributed the growth to rising household consumption. 

“It was driven by the religious holidays,” Amalia told reporters.

For context, Indonesia -- the world’s largest Muslim-majority nation -- observed Ramadan and Eid in the first quarter. The holiday saw countless Indonesians going on homecoming trips and enjoying lavish meals for celebrations. The Chinese New Year also fell in the same quarter. The household consumption component alone grew 5.52% yoy in January-March 2026, with the sharpest hike occuring in the restaurant and hotel sub-groups.

Indonesia is also growing at a faster pace than some of its top trading partners such as China (5.0%), the US (2.7%), and even close neighbor Malaysia (5.3%).

Senior economic minister Airlangga Hartarto had previously stayed upbeat that the “Q1 growth would reach at least 5.5% or more”. 

The announcement meant Indonesia had beaten analysts’ expectations. Think-tank LPEM FEB UI had set the Q1 2026 outlook at 5.48% yoy with a range of between 5.46 and 5.50%. 

Indonesia aims for a 5.4% annual expansion this year.