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TEMPO.CO, Jakarta - Statistics Indonesia (BPS) recorded three components of expenditure with the highest growth in the first quarter of 2026. "The main contributors to the economic growth in the first quarter of 2026 are household consumption, gross fixed capital formation, and government consumption," said Head of BPS Amalia Adininggar Widyasanti in a press conference at the BPS building in Jakarta, on Tuesday, May 5, 2026.
Government consumption became the component of expenditure with the highest annual growth, reaching 21.81 percent. Government consumption contributed 6.72 percent to the Gross Domestic Product (GDP) in the period of January-March 2026.
BPS noted that growth in government consumption was driven by the realization of the 14th-month salary payment, as well as by spending on goods and services, particularly those related to the Free Nutritious Meal project (MBG).
However, Amalia stated that household consumption is the main contributor to economic growth based on the highest contribution of expenditure to GDP. Household consumption increased by 5.52 percent, contributing 54.36 percent to GDP.
After households, the type of expenditure with the highest contribution to GDP is gross fixed capital formation (GFCF), at 28.29 percent. Third is export expenditure, accounting for 21.22 percent of GDP. Export consumption contributes to the fourth-largest share of the GDP.
Amalia explained that even though government consumption grew significantly, household expenditure remains the primary contributor to economic growth. She acknowledged that the contribution of government consumption has not yet caught up with households and investments. "Because its proportion or share is indeed the largest in terms of the GDP value, both based on current prices and constant prices," she said.
Meanwhile, economic growth increased by 5.61 percent annually in the January-March 2026 period. Economic growth in the first quarter of 2025 was recorded at 4.87 percent. The GDP for the first quarter of 2026 is made up of the price-based GDP at current prices, Rp6,187.2 trillion, and the price-based GDP at constant prices, Rp3,447.7 trillion.
In terms of production, the business fields that made the primary contribution to GDP growth are processing, trade, agriculture, and construction. The business field with the highest growth is the manufacturing industry, which grew by 1.03 percent. This is followed by trade at 0.82 percent, agriculture at 0.55 percent, and construction at 0.53 percent.
According to Amalia, the growth in the manufacturing industry in the first quarter of 2026 was driven by domestic and foreign demand. For instance, the food and beverage industry grew by 7.04 percent due to increased demand during Ramadan and Eid al-Fitr.
Read: Indonesia Records Highest Q1 Growth in Last Five Years at 5.61%
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