Economic Growth in Indonesia Outpaces G20 and ASEAN in Q1 2026
Indonesia recorded economic growth of 5.61% in the first quarter of 2026, performing better than the average growth seen across G20 and ASEAN countries.
Stable Inflation and Fiscal Discipline Support Economic Resilience
The country has entered 2026 with solid momentum, supported by stable inflation, which stood at 3.08% in May, and policies that have helped the economy remain resilient despite global uncertainty.
Indonesia has also shown strong resilience to external challenges, including energy price shocks. The government has kept its budget deficit below 3% of GDP, giving it enough flexibility to respond to changing global conditions while maintaining economic growth.
Signs of A Healthy Economy
Several key indicators point to a healthy economy. Manufacturing activity remained steady, bank lending increased by 11.5%, and liquidity continued to grow. Indonesia also recorded its 72nd straight month of trade surplus, while foreign exchange reserves reached US$144.9 billion.
Strong economic growth has also delivered benefits for the labour market. Around 1.9 million new jobs were created, reducing the unemployment rate to 4.68%. At the same time, the national poverty rate continued to decline, supported by government assistance programs.
Looking ahead, the government is investing in priority areas such as food and energy security, healthcare, education, infrastructure, housing, and rural development. It is also focusing on industrialisation, digital transformation, and stronger economic partnerships to keep economic growth sustainable and inclusive in the years ahead.
