Indonesia Q1 2026 Growth Hits 5.61 Percent

(MENAFN) Indonesia's economy accelerated sharply in the opening quarter of 2026, expanding 5.61 percent year on year — the country's strongest quarterly performance in twelve months — fueled by sweeping sectoral gains and a dramatic spike in state expenditure, Statistics Indonesia (BPS) announced Tuesday.

BPS head Amalia Adininggar Widyasanti, speaking at a press conference, said the result marked a notable improvement over the 5.39 percent growth recorded in the fourth quarter of 2025 and significantly outpaced the 4.87 percent posted in the same period a year earlier.

Growth was broad-based across the economy, with virtually every sector registering gains. The sole exceptions were mining and the electricity and gas industries. Manufacturing — the economy's single largest contributor — expanded 5.04 percent, underscoring the sector's continued resilience.

The accommodation and food services sector led all industries with blistering growth of 13.14 percent, while transportation and warehousing posted the second-strongest performance at 8.04 percent.

Government consumption was the standout driver of the quarter, surging 21.81 percent — propelled by religious holiday allowance disbursements alongside heightened spending on goods and services, including outlays tied to the state's free nutritious meals program. Household consumption, meanwhile, climbed a steady 5.52 percent, reflecting durable domestic demand as a pillar of economic momentum.

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