Indonesia posts fastest first-quarter growth in 3 years, but headwinds loom

Indonesia’s economy grew 5.6 per cent during the first quarter of 2026, its fastest pace in more than three years, but analysts warn that the coming months will pose significant tests for Southeast Asia’s biggest economy. Statistics body BPS attributed the growth to robust household consumption – which made up 54.36 per cent of gross domestic product and grew by 5.52 per cent year-on-year – and a surge in government spending. Amalia Adininggar Widyasanti, head of BPS and deputy minister for...