Indonesia Economy Shrinks 0.77% QoQ in Q1

2026-05-05 04:16 By Farida Husna 1 min. read

Indonesia’s economy contracted 0.77% qoq in Q1 2026, marking its first quarterly GDP decline in a year and coming in less severe than market estimates of a 0.97% drop.

The pullback followed a 0.86% growth in Q4, weighed by a sharp reversal in government spending (-30.13% vs 37.68% in Q4) and a fall in fixed investment (-7.54% vs 3.5%).

Both exports (-9.15% vs -1.18%) and imports (-8.12% vs 6.62%) slipped, reflecting global and domestic headwinds, including tensions in the Middle East and a softer rupiah.

Private consumption growth eased (1.01% vs 1.84%), despite festive demand and the 13th-month wage bonus.

By sector, output shrank in mining (-8.20% vs 3.96%), manufacturing (-1.01% vs 0.55%), construction (-4.47% vs 3.88%), and transport (-1.49% vs 1.81%).

Growth eased in wholesale/retail trade (0.13% vs 0.68%), financial services (1.38% vs 6.13%), and public administration (13.04% vs 13.59%).

Agriculture rebounded (9.56% vs -18.33%), and accommodation gained traction (3.91% vs 1.57%).



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Indonesia Economy Shrinks 0.77% QoQ in Q1
Indonesia’s economy contracted 0.77% qoq in Q1 2026, marking its first quarterly GDP decline in a year and coming in less severe than market estimates of a 0.97% drop. The pullback followed a 0.86% growth in Q4, weighed by a sharp reversal in government spending (-30.13% vs 37.68% in Q4) and a fall in fixed investment (-7.54% vs 3.5%). Both exports (-9.15% vs -1.18%) and imports (-8.12% vs 6.62%) slipped, reflecting global and domestic headwinds, including tensions in the Middle East and a softer rupiah. Private consumption growth eased (1.01% vs 1.84%), despite festive demand and the 13th-month wage bonus. By sector, output shrank in mining (-8.20% vs 3.96%), manufacturing (-1.01% vs 0.55%), construction (-4.47% vs 3.88%), and transport (-1.49% vs 1.81%). Growth eased in wholesale/retail trade (0.13% vs 0.68%), financial services (1.38% vs 6.13%), and public administration (13.04% vs 13.59%). Agriculture rebounded (9.56% vs -18.33%), and accommodation gained traction (3.91% vs 1.57%).
2026-05-05
Indonesia GDP Expands 0.86% QoQ in Q4, Weakest in 3 Quarters
Indonesia’s economy grew 0.86% qoq in Q4 2025, beating market estimates of 0.68% but easing from a revised 1.42% in Q3. It marked a third straight quarter of growth, though the mildest in the sequence amid lingering disruptions from November's natural disasters in Sumatra. Fixed investment slowed (3.5% vs 6.37% in Q3), and net trade dragged as exports fell (-1.18% vs 6.95%), but imports rose (6.62% vs -0.45%). Private consumption recovered (1.84% vs -0.55%), helped by lower borrowing costs and government stimulus, including cash handouts, while government spending surged (37.68% vs 4.76%). By sector, output eased in manufacturing (0.55% vs 4.09%), construction (3.88% vs 5.28%), and wholesale/retail trade (0.68% vs 2.21%), while agriculture plunged (-18.33% vs 3.33%). In contrast, mining (3.96% vs 1.47%), transport (1.81% vs 1.08%), and accommodation (1.57% vs 0.73%) accelerated, with financial services (6.13% vs -4.13%) and public administration (13.59% vs -17.21%) rebounding sharply.
2026-02-05
Indonesia GDP Expands 1.43% QoQ in Q3
Indonesia’s economy grew 1.43% qoq in Q3 2025, matching market consensus of 1.4% but slowing sharply from the 4.04% jump in Q2, the fastest pace in near five years. Private consumption fell (-0.56% vs 3.14% in Q2) despite lower borrowing costs and continued government stimulus, including cash handouts. Government spending also weakened sharply (4.6% vs 21.05%), following typical seasonal patterns. Meanwhile, fixed investment accelerated (6.37% vs 4.10%). Exports strengthened (6.77% vs 5.13%) while imports fell (-0.74% vs 9.90%), supporting growth after the U.S. eased reciprocal tariffs in early August. Output eased in agriculture (3.32% vs 13.53%), wholesale and retail trade (2.24% vs 3.12%), transport (1.08% vs 6.58%), and accommodation (0.74% vs 6.43%), while activity shrank in financial services (-4.13% vs 1.48%) and public administration (-17.15% vs 0.04%). In contrast, mining (1.47% vs 1.06%), manufacturing (4.09% vs 1.38%), and construction (5.28% vs 0.98%) posted stronger gains.
2025-11-05