Jakarta: Statistics Indonesia (BPS) reported that the country's economic fundamentals remained solid in the first quarter of 2026, supported by household consumption, investment, and accelerated government spending.
According to Emirates News Agency, BPS recorded that Indonesia's economy grew 5.61% year-on-year in the January-March 2026 period. This growth was driven by significant contributions from consumption, investment, and government fiscal stimulus. BPS head Amalia Adininggar Widyasanti highlighted that household consumption was the main driver of growth, accounting for more than half of national economic expenditure.
Household consumption expanded by 5.52%, contributing 54.38% to the gross domestic product (GDP) and adding 2.94 percentage points to the overall economic growth. Additionally, gross fixed capital formation, or investment, grew by 5.96%, contributing 28.29% to GDP and 1.79 percentage points to the first-quarter economic growth.
Amalia noted a rise in capital goods imports by 14.27%, alongside a 7.2% increase in foreign and domestic investment realization. Government capital spending saw a notable expansion of 36.7%. Furthermore, government consumption grew by 21.81%, contributing 1.26 percentage points to the national economic growth.