Indonesia Posts 5.61% Q1 Growth as Inflation Holds at 3.08% and 1.9 Million Jobs Emerge
Updated
Updated · VOI English · Jun 21
Indonesia Posts 5.61% Q1 Growth as Inflation Holds at 3.08% and 1.9 Million Jobs Emerge
1 articles · Updated · VOI English · Jun 21
Summary
Indonesia’s economy grew 5.61% year on year in the first quarter of 2026, Finance Minister Purbaya Yudhi Sadewa said, citing performance that outpaced many G20 and ASEAN peers.
May inflation stood at 3.08%, while the budget deficit remained below the 3% legal ceiling, which Purbaya said underpins policy credibility and gives the state room to absorb external shocks.
A 77% energy-resilience score, a 72-month trade surplus streak and $144.9 billion in foreign reserves added to that buffer, alongside a manufacturing PMI of 50.0, 14.8% M0 growth and 11.5% bank credit growth.
About 1.9 million jobs were created and the open unemployment rate fell to 4.68% in 2026; the poverty rate also eased to 8.25% in September 2025 from 8.57% a year earlier.
Purbaya linked that resilience to eight national priority program clusters, including food, energy and water security, education, health, infrastructure, housing and disaster resilience, as Indonesia pushes broader structural transformation.