TEMPO.CO, Jakarta - Statistics Indonesia (BPS) reported that economic growth increased by 5.61 percent annually from January to March of 2026. Meanwhile, economic growth in the first quarter of 2025 was recorded at 4.87 percent.
"Indonesia's economic growth in the first quarter of 2026, compared to the first quarter of 2025, grew by 5.61 percent," said BPS Head Amalia Adininggar Widyasanti at the BPS building in South Jakarta on Tuesday, May 5, 2026.
Amalia stated that, based on current prices, the gross domestic product (GDP) in the first quarter of 2026 amounted to Rp6,187.2 trillion, while based on constant prices, it amounted to Rp3,447.7 trillion.
From a production standpoint, the main contributors to GDP growth were the processing, trade, agriculture, and construction industries. The industry with the highest growth was the processing industry, which grew by 1.03 percent. This was followed by trade at 0.82 percent, agriculture at 0.55 percent, and construction at 0.53 percent.
According to Amalia, the growth of the processing industry in the first quarter of 2026 was driven by domestic and foreign demand. For example, the food and beverage industry grew by 7.04 percent due to increased demand during Ramadan and Eid al-Fitr.
Meanwhile, from the expenditure side, household consumption experienced the highest growth at 5.52 percent. This was followed by gross fixed capital formation at 5.96 percent. Together, they accounted for 82.65 percent of the total GDP.
Previously, the Center of Reform on Economics (CORE) predicted that Indonesia's economic growth in the first quarter of 2026 would range from 5.25 to 5.35 percent. In the report titled "Brief Report: Quarterly Economic Review Q1-2026" released by CORE on April 29, 2026, the main growth was supported by the prospect of household consumption growth.
Additionally, the formation of gross fixed capital (PMTB) and central government spending. "Meanwhile, for the entire year 2026, economic growth is estimated to be between 4.9-5.1 percent," as stated in the report, cited on Sunday, May 3, 2026.
CORE noted that household consumption was expected to grow quite strongly in the first quarter of 2026, though it was expected to weaken in subsequent quarters throughout the year.
On the other hand, Coordinating Minister for Economic Affairs Airlangga Hartarto predicted that Indonesia's economy is expected to grow by 5.5 percent. This means that growth is higher than the 5.35 percent recorded in the fourth quarter of 2025.
This prediction is in line with the Ministry of Finance's forecast. "The Ministry of Finance projects that the growth in the first quarter is expected to be 5.5 percent," said Deputy Minister of Finance Juda Agung. The former Deputy Governor of Bank Indonesia stated that this confidence stems from the increase in state revenue, particularly from taxes.
Ilona Estherina contributed to the writing of this article
Read: Indonesia Records Highest Q1 Growth in Last Five Years at 5.61%
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