Jakarta, June 22, 2026 – The Europe Today: Indonesia’s economy expanded by 5.61 percent year-on-year in the first quarter of 2026, outperforming the average growth rates of both G20 and ASEAN economies while maintaining stable inflation, Finance Minister Purbaya Yudhi Sadewa said.
Speaking at a public lecture at Nankai University in Tianjin, China, the minister said Indonesia entered 2026 with strong economic momentum, stable prices, and resilient macroeconomic fundamentals despite ongoing global uncertainties.
“Indonesia continues to stand out with first-quarter 2026 GDP growth of 5.61 percent year-on-year, outperforming many G20 and ASEAN countries. At the same time, we have maintained price stability with May 2026 inflation at 3.08 percent,” he said in remarks cited in a statement received in Jakarta on Saturday.
Purbaya noted that the performance reflects Indonesia’s capacity to sustain growth while preserving macroeconomic stability, adding that the country remains resilient against potential global energy shocks.
He said Indonesia’s energy resilience score stands at 77 percent, slightly higher than China’s 76 percent, supported by strong policy buffers and prudent fiscal management.
According to the minister, Indonesia’s fiscal deficit remains below 3 percent of GDP, providing sufficient space for the state budget to absorb external shocks and maintain stability.
Key domestic indicators also pointed to solid economic activity, including a manufacturing Purchasing Managers’ Index (PMI) at the expansion threshold of 50.0, broad money growth of 14.8 percent year-on-year, and bank lending growth of 11.5 percent.
On the external front, Indonesia recorded a trade surplus for 72 consecutive months, while foreign exchange reserves stood at US$144.9 billion, sufficient to cover 5.6 months of imports and external debt obligations.
The minister further said strong economic performance has translated into labor market improvements, with 1.9 million new jobs created and the unemployment rate falling to 4.68 percent in 2026.
Poverty levels also declined, dropping from 8.57 percent in September 2024 to 8.25 percent in September 2025, supported by expanded social protection programs.
To sustain growth momentum, the government is implementing eight national priority program clusters covering food sovereignty, energy and water self-sufficiency, education, healthcare, infrastructure, housing, and disaster resilience.
Structural reforms are also being accelerated through downstream industrialization, strengthened rural development, and integrated poverty reduction programs, alongside improvements in governance, digitalization, law enforcement, defense, and economic diplomacy.
“This proves that Indonesia’s economic growth is not only resilient at the macro level, but is also being transformed into job creation, poverty reduction, and broader and more equitable prosperity for the people,” Purbaya added.
