Govt: National Economic Growth in the First Quarter of 2026 Remains Strong

Coordinating Minister for Economic Affairs Airlangga Hartarto conveys a press statement to the media following the Government Working Meeting (Rapat kerja Pemerintah/RKP) at the Presidential Palace Complex in Jakarta on Wednesday (4/08). (Photo by: BPMI of Presidential Secretariat)

The Government has affirmed that national economic growth in the first quarter of 2026 remains strong and stable despite global uncertainties. This was conveyed by Coordinating Minister for Economic Affairs Airlangga Hartarto in a press statement to the media following the Government Working Meeting (Rapat kerja Pemerintah/RKP) with members of the Merah Putih Cabinet, Echelon I officials from ministries/agencies, and CEOs of state-owned enterprises at the Presidential Palace Complex in Jakarta on Wednesday (4/08).

“The government still sees that economic growth in the first quarter remains solid and is expected to reach, as the Minister of Finance also stated earlier, at least 5.5 percent,” he explained.

Minister Airlangga noted that this achievement is supported by strong domestic economic fundamentals, particularly household consumption. “Our consumption remains strong, accounting for 54 percent of GDP,” he added.

From a fiscal perspective, the performance of the state budget (APBN) has also played a significant role, supported by increased tax revenues through the end of the first quarter. “The Minister of Finance reported that as of March, tax revenue increased by 14.3 percent or Rp462.7 trillion, and the manufacturing sector is also expanding,” he said.

On the same occasion, Minister Airlangga also highlighted the condition of national food security, which shows a positive trend. According to him, the current rice stock held by Bulog has reached 4.6 million tons.

“Our food security is relatively strong. Rice production in 2025 reached 34.7 million tons, and Bulog’s stock stands at 4.6 million tons,” he added.

Nevertheless, the government continues to prepare various strategic policies to maintain growth momentum and economic stability. One of these is the implementation of the B50 biodiesel program, which is expected to strengthen the state budget.

“We have agreed to implement B50 starting July 1, which will improve budget resilience through savings of Rp48 trillion,” he stated.

Furthermore, the government is committed to maintaining fiscal discipline, particularly in managing the debt ratio and budget deficit. “The President has committed to keeping the debt ratio at 40 percent, even though the law allows up to 60 percent. Similarly, the budget deficit will be maintained at 3 percent, and this will be upheld through the end of the year,” he concluded. (Bureau of Press, Media, and Information of the Presidential Secretariat) (TCUD/LW)