RRI.CO.ID, Jakarta – The Indonesian Central Bureau of Statistics (BPS) will release Indonesia’s economic growth data for the first quarter of 2026 (Q1-2026) on Tuesday, May 5, 2026. The economy is projected to expand at a rate above 5 percent.

“According to the Ministry of Finance’s projection, economic growth in Q1-2026 is 5.5 percent,” Deputy Finance Minister Juda Agung said this week during Bank Indonesia’s ‘Accelerating Indonesian Intermediation (PINISI)’ dialogue.

He noted that the projection is supported by strong Value-Added Tax (VAT) and Sales Tax on Luxury Goods (PPnBM) revenue.

“If we look at the details of tax growth in the 2026 State Budget, VAT and PPnBM have risen significantly by 57.7 percent,” Juda said. He explained that the sharp increase in these taxes reflects robust economic activity in both consumption and industry.

“VAT and PPnBM are clearly linked to consumption and transactions involving the purchase of goods, whether retail or business-related,” he added.

Juda also highlighted that the government is adjusting its spending pattern to ensure a more balanced distribution across quarters. In Q1 2026, government spending is targeted at 21 percent, while in Q2, Q3, and Q4, the target is around 26 percent.

“The goal is to ensure more even economic growth. Accelerated spending measures are also encouraging public consumption, which remains on an upward trend,” he said.

Meanwhile, Bank Indonesia projects Q1-2026 growth at 5.4 percent. “Global economic disruptions are affecting the national economy; therefore, Indonesia must build stronger resilience,” BI Senior Deputy Governor Destry Damayanti said.

She emphasized that recent developments underscore the need to strengthen the domestic economy. “Indonesia’s economy is essentially domestic-oriented, with consumption accounting for 54 percent and investment for 30 percent,” Destry explained.

One of BI’s key measures to reinforce resilience is accelerating intermediation, namely the distribution of credit and bank financing to productive sectors of the economy. (Gusti Panji/Lasti Martina)