Indonesia economy grew 5.6% in Q1 despite war pressures
Summary
Indonesia's economy grew 5.6% year-on-year in Q1 2026, surpassing forecasts despite Middle East war pressures and fuel subsidy challenges.
Key Points
- Indonesia's economy grew 5.6% year-on-year in the first quarter of 2026, exceeding government forecasts.
- Household and government expenditures were key contributors, with government spending growing over 21%.
- Rising global oil prices due to Middle East conflicts have strained Indonesia's fuel subsidies and fiscal budget.
- The central bank commits to stabilize the rupiah amidst fiscal deficit concerns and a slipping currency exchange rate.
