RRI.CO.ID, Jakarta - Amid ongoing global uncertainty, Indonesia has managed to maintain strong economic performance in the first quarter of 2026. Finance Minister, Purbaya Yudhi Sadewa, made the statement during the APBN Kita Press Conference for the May 2026 edition in Jakarta on Tuesday, May 19, 2026.

Indonesia’s economy grew by 5.61 percent in the first quarter of 2026, surpassing the average economic growth rates of G20 and ASEAN countries. The growth was supported by household consumption growth of 5.52 percent, reflecting strong public purchasing power, and government consumption growth of 21.8 percent, driven by fiscal policies acting as an accelerator.

“If we look only at the growth figures, household spending growth at 5.5 percent is among the highest levels, usually around 4.9 to 5 percent. So when some say the growth is dangerous because it is only supported by government spending and therefore vulnerable, that interpretation is incorrect,” Purbaya said, as quoted in an official statement.

Inflation also remained under control within the target range set by Bank Indonesia. As of April 2026, inflation stood at 2.42 percent, reflecting the government’s success through central and regional inflation control teams in maintaining price stability. The government has continued maintaining subsidized fuel prices to control inflation and preserve public purchasing power.

The Finance Minister emphasized that Indonesia’s economic resilience is also supported by increasingly close coordination between fiscal and monetary policies to sustain high and sustainable economic growth. The placement of Rp200 trillion in state-owned banks under the Himbara group has helped improve liquidity in the economy, contributing to lower deposit and lending interest rates.

In addition, policy transmission to credit in the real sector continues to be strengthened together with Bank Indonesia. “When monetary and fiscal policies move in synergy, they can stimulate economic growth and create faster economic expansion,” the Finance Minister stated.

Entering the second quarter of 2026, economic activity also showed positive trends. Car and motorcycle sales surged by 55 percent and 28.1 percent respectively, as activities normalized following the Eid holiday period. Meanwhile, growth in fuel consumption, electricity usage, and domestic cement demand indicated rising industrial and investment activities, reinforcing optimism for second-quarter growth.

“This data surprised me as well. Earlier, I was rather pessimistic about the second quarter. But after seeing figures like these, it’s encouraging. What does it mean? Purchasing power remains strong,” Purbaya said.