BPS: Indonesia’s Economy Expands 5.61% in Q1 2026

JAKARTA, Jakartaweekly.com — Indonesia’s economy expanded 5.61% year-on-year in the first quarter of 2026, Statistics Indonesia (BPS) reported on Tuesday, with gross domestic product (GDP) at current prices reaching Rp6,187.2 trillion. On a quarterly basis, however, the economy contracted 0.77% from the previous quarter.

Economic growth in early 2026 was supported by strong performance in key service sectors and resilient domestic consumption. By industry, accommodation and food service activities recorded the highest growth at 13.14%, followed by other services at 9.91%, and transportation and warehousing at 8.04%.

Manufacturing, Indonesia’s largest economic sector, remained a major contributor, expanding 5.04% year-on-year.

Indonesia’s economic structure continued to be dominated by manufacturing, which accounted for 19.07% of GDP, followed by wholesale and retail trade at 13.28%, agriculture at 12.67%, construction at 9.81%, and mining and quarrying at 8.69%. Together, these five sectors contributed 63.52% of the national economy.

On the expenditure side, household consumption remained the primary growth engine, contributing 54.36% of GDP. Gross fixed capital formation accounted for 28.29%, while exports of goods and services contributed 21.22%.

Among expenditure components, government consumption expenditure recorded the strongest annual growth, rising 21.81% year-on-year.

Regionally, Java continued to dominate Indonesia’s economy with a 57.24% share, followed by Sumatra at 22.08%. Bali and Nusa Tenggara posted the fastest regional growth at 7.93%.

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