Indonesia’s GDP expanded 5.61% year-on-year in Q1 2026, accelerating from 5.39% in Q4 and exceeding market expectations of 5.3%. It marked the strongest yearly growth since Q3 2022, boosted by an acceleration in private consumption (5.52% vs 5.11%), amid continued government support measures to boost spending. Government expenditure picked up (21.81% vs 4.55%), while fixed investment stayed robust (5.96% vs 6.12%). On the trade front, exports slowed sharply (0.90% vs 3.25%), reflecting growing supply chain disruptions linked to the geopolitical tensions, while imports surged (7.18% vs 3.96%) on solid domestic demand. By sector, activity strengthened in wholesale/retail trade (6.26% vs 6.07%), construction (5.49% vs 3.89%), and accommodation and food services (13.14% vs 7.15%), but eased in manufacturing (5.04% vs 5.40%) and information and communication (7.14% vs 8.09%). The economy expanded 5.11% in 2025, below the government’s 5.2% target, with growth projected at 5.4% this year.