Jakarta, May 5, 2026 – Indonesia’s economy expanded by a stronger-than-expected 5.61% year-on-year in the first quarter of 2026, marking its highest growth rate in 14 quarters and placing it at the top of major G-20 economies for the period.
On Tuesday, the latest data from Statistics Indonesia revealed that the report surpassed market expectations of around 5.4%.
The results also exceeded China’s 5.0% expansion, along with other G-20 companies such as South Korea (3.6%), Saudi Arabia (2.8%), and the United States (2.7%).
According to the head of Statistics Indonesia, the robust expansion was driven by strong domestic consumption, particularly around Eid al-Fitr activities.
Domestic Demand Drives Surprise Upside
All business sectors except mining and utilities posted positive growth, with the Indonesian economy reaching a nominal GDP of 6,187.2 trillion rupiah (approximately $380 billion).
Compared to the previous quarter, however, the economy shrank 0.77% — a normal seasonal decline.
Indonesia’s minister had predicted growth between 5.5% to 5.7%, whereas the central bank offered a more moderate forecast of 5.2%.
“This growth is higher compared to the first quarter of 2025, which grew 4.87% year-on-year,” said Amalia Adininggar Widyasanti, Head of Statistics Indonesia.
Indonesia Leads G-20 in Early 2026
With a two-year average growth of 5.08% compared to the G-20 average of just 3.30%, Indonesia continues to stand out as a regional outperformer.
By comparison, several European G-20 economies are stuck below 1% growth (France at 1.1%, Germany at 0.3%), while Indonesia’s expansion has exceeded the group’s average by nearly 1.8 percentage points.
The first-quarter result is the strongest since the 5.73% recorded in the third quarter of 2022, reinforcing Indonesia’s position as a bright spot in the global economic landscape.
Source: cnbcindonesia
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