Indonesia's economy grows as government spending surges

Indonesia's economy expanded by 5.61 percent year on year in the first quarter of 2026, supported by broad-based growth across multiple sectors and a sharp increase in government spending, Statistics Indonesia (BPS) said on Tuesday.

Amalia Adininggar Widyasanti, head of BPS, stated during a press conference that the latest figure was higher than the 5.39 percent growth recorded in the fourth quarter of 2025 and also above the 4.87 percent registered in the same period last year, News.Az reports, citing Xinhua.

According to BPS, almost all sectors of the economy showed positive performance, with the exception of mining, as well as electricity and gas.

The manufacturing sector, which accounts for a significant share of Indonesia’s economy, grew by 5.04 percent.

The accommodation and food services sector recorded the highest growth among all sectors at 13.14 percent, followed by transportation and warehousing, which expanded by 8.04 percent.

Government consumption surged by 21.81 percent, driven mainly by religious holiday allowance payments and increased spending on goods and services, including the free nutritious meals program. Household consumption also rose, increasing by 5.52 percent.

News.Az 

By Nijat Babayev