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View all search resultsGDP surprises with 5.61% growth in Q1
The Indonesian economy exceeded expectations in the first quarter as the country posted the strongest gross domestic product growth in years, thanks to a seasonal boost to consumer spending.
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Vehicles line up bumper-to-bumper in Cirebon, West Java, on March 23, 2026, as people headed back to Greater Jakarta from the Idul Fitri holiday. (Antara/Dedi Suwidiantoro)
T
he Indonesian economy exceeded expectations in the first quarter as the country posted the strongest gross domestic product growth in years, but the performance is clouded by the Iran war that might change the growth story for the rest of the year.
National output from January through March was up 5.61 percent year-on-year (yoy), according to data presented by Statistics Indonesia (BPS) on Tuesday, marking the highest rate since the third quarter of 2022, when economic activity benefited from a commodity price boom.
Coordinating Economy Minister Airlangga Hartarto said in a press conference following the data publication that the growth rate was “good, beyond expectations of various institutions”, hinting at economists’ projections of around 5.4 percent.
The latest figure is up from the 5.39 percent annual growth rate recorded in preceding quarter and far outpaces the 4.87 percent posted in last year’s first quarter.
Household spending, which accounts for the largest share in Indonesia’s economy, and hence in the GDP calculation, grew 5.52 percent yoy on the back of a seasonal boost from Ramadan and Idul Fitri, marking an acceleration from 5.11 percent growth recorded in last year’s fourth quarter.
The Islamic festive period generally drives consumer spending in Indonesia, home to the world’s largest Muslim population, while the government also provided a value-added tax discount on airfares to support travel at a time when millions of Indonesians traditionally come together for family reunions.
