JAKARTA – Statistics Indonesia or Badan Pusat Statistik (BPS), reported that the country’s economy grew 5.61% year-on-year in the first quarter of 2026, exceeding the consensus estimate of around 5.3%.

BPS Head Amalia Adininggar Widyasanti said the expansion was supported by domestic activity. Gross domestic product (GDP) reached IDR 6,187.2 trillion at current prices and IDR 3,447 trillion at constant prices.

“As such, Indonesia’s economic growth in the first quarter of 2026, compared with the same period in 2025, reached 5.61%. This performance was supported by domestic economic activity,” she said in a press conference, as quoted by Bloomberg Technoz, Tuesday (5/5).

The figure marks an improvement from 4.87% growth in the same period last year. However, on a quarterly basis (quarter-on-quarter), the economy contracted by 0.77% compared with the fourth quarter of 2025.

By sector, growth was driven by key industries including manufacturing, trade, agriculture, construction and mining.

Meanwhile, the fastest-growing sectors were accommodation and food services, other services, as well as transportation and warehousing.

Earlier, a Bloomberg survey of 32 economists had projected Indonesia’s Q1 growth at only 5.3%.

For the full year, the economy is expected to grow around 5% in 2026, slightly slower than the 5.11% recorded in 2025.

Amid external pressures and ongoing conflict in the Middle East, monetary policy is expected to remain tight. The rupiah has weakened 3.88% year-to-date, contributing to a decline in foreign exchange reserves of USD 8.4 billion in the first quarter of 2026.

Economists believe there is limited room for rate cuts, with the benchmark interest rate projected to remain at 4.75% through year-end. (DH/ZH)