Indonesia's Q1 economy remains solid on strong consumption: BPS

JAKARTA, 27th May, 2026 (WAM) -- Statistics Indonesia (BPS) said the country's economic fundamentals remained solid in the first quarter of 2026, supported by household consumption, investment, and accelerated government spending.

"Indonesia's economic fundamentals during the first quarter of 2026 remained solid," BPS head Amalia Adininggar Widyasanti said in Jakarta as quoted by Indonesian Nws Agency (ANTARA).

BPS recorded that Indonesia's economy grew 5.61% year-on-year in the January-March 2026 period, driven by consumption, investment, and government fiscal stimulus.

Amalia said household consumption remained the main driver of growth, accounting for more than half of national economic expenditure.

Household consumption expanded 5.52%, contributing 54.38% to gross domestic product (GDP) and 2.94 percentage points to overall economic growth.

Gross fixed capital formation, or investment, grew 5.96% and contributed 28.29% to GDP.

Investment contributed 1.79 percentage points to first-quarter economic growth.

"Capital goods imports rose 14.27%, while foreign and domestic investment realization increased 7.2%. Government capital spending also expanded 36.7%," she said.

Government consumption grew 21.81%and contributed 1.26 percentage points to national economic growth.

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