Indonesia’s 5.6% growth is a fiscal ‘sugar rush’, not a structural boom
How can an economy grow so fast while its currency hits record lows?
Add BT as a preferred source
ON PAPER, Indonesia’s first-quarter 2026 gross domestic product growth of 5.61 per cent is the envy of the region.
For investors banking on South-east Asia’s largest economy, the headline figure signals a booming resurgence, marking the fastest expansion in recent years.
However, a closer look under the hood reveals a more precarious reality: This is an expansion built heavily on state-funded stimulus rather than structural market strength.
TRENDING NOW
Buyer for England striker Harry Kane’s former mansion must pay £3.4 million after abandoning deal
Ohmyhome Ltd sells real estate business for token US$1 due to poor business and continued losses
Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan
What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future
