Indonesia's first-quarter economic growth is fastest in over three years

Indonesia's economy grew at its fastest annual pace in over three years at the start of 2026, driven by a surge in government spending and holiday celebrations. GDP grew 5.61% in the January-March quarter, stronger than expected, and was the fastest growth rate since the third quarter of 2022. Household spending rose by 5.52% annually, while investment expanded by 5.96%. Most business sectors expanded, except for mining and utilities, but analysts warn of potential economic headwinds from the Middle East conflict and high energy prices.