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Indonesian Government Consumption Grows Rapidly in the Q1 2026

Adi Ahdiat 05/05/2026 16:11 WIB

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According to the BPS report, the Indonesian government's consumption grew by 21.81% (year-on-year) in the first quarter of 2026, far exceeding the growth of other GDP expenditure components.

The growth of Indonesia's GDP based on expenditure components (Q1 2026)

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The growth of Indonesia's GDP based on expenditure components (Q1 2026)

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According to a report from the Central Statistics Agency (BPS), Indonesia's economy grew by 5.61% (year-on-year/yoy) in the first quarter of 2026.

This growth was measured by the value of Indonesia's constant-price gross domestic product (GDP), which rose from Rp3,264.6 trillion in the first quarter of 2025 to Rp3,447.7 trillion in the first quarter of 2026.

If measured based on current prices, Indonesia's GDP value in the first quarter of 2026 reached Rp6,187.2 trillion.

In terms of expenditure components, the highest growth occurred in the government consumption expenditure sector.

In the first quarter of 2026, the constant-price GDP value of government consumption expenditure grew by 21.81% (yoy).

This figure far exceeded the growth of household consumption, non-profit institutions serving households (LNPRT), gross fixed capital formation (PMTB), and other expenditure components, as shown in the chart.

According to the Head of BPS, Amalia Adininggar Widyasanti, the rapid growth of government consumption was driven by an increase in employee spending, as well as spending on goods and services provided to the public in the form of a free nutritious meal program (MBG).

However, the contribution of government consumption expenditure to GDP was not very significant.

Here are the details of the contribution of each expenditure component to Indonesia's GDP in the first quarter of 2026, sorted from the largest to the smallest:

Household consumption: 54.36% (of the total current-price GDP)
PMTB: 28.29%
Exports: 21.22%
Government consumption: 6.72%
LNPRT consumption: 1.40%
Imports: 20.29%

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesian Government Consumption Grows Rapidly in the Q1 2026

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