Indonesia’s Q1 growth hits 3-year high, but momentum seen peaking

[JAKARTA] Indonesia’s economy expanded at its fastest pace in more than three years in the first quarter of 2026, but economists warn that rising global tensions and domestic fiscal pressures could weigh on growth in the months ahead.

South-east Asia’s largest economy grew 5.6 per cent year on year in the January-to-March period, its fastest expansion since the third quarter of 2022, the statistics agency said on Tuesday (May 5). The figure also exceeded the median forecast in a Bloomberg poll and was higher than growth recorded in the final quarter of 2025.

But analysts cautioned that the strong performance may represent the peak of Indonesia’s growth this year as global uncertainties intensify.