JAKARTA – Indonesia’s economy grew 4.87 percent in the first quarter from a year earlier, its weakest growth rate in more than three years, official data showed on Monday, compared with a 4.91 percent growth rate expected by analysts in a Reuters poll.
The January-March growth was the slowest since the third quarter of 2021 and compared with 5.02 percent in the previous quarter.
On a non-seasonally adjusted, quarter-on-quarter basis, gross domestic product contracted 0.98 percent, Statistics Indonesia data showed.
Resource-rich Indonesia’s economic growth has hovered around 5 percent since the pandemic.
President Prabowo Subianto, who took office last year, has pledged to lift that to 8 percent during his five-year term, but is facing challenges from slowing global growth amid a trade war, as well as weakening domestic demand and a tighter budget position.
US-bound exports from Southeast Asia’s biggest economy could be hit by hefty tariffs in coming months, with Jakarta discussing trade with Washington.
Indonesia is targeting economic growth of between 5.8 percent and 6.3 percent in 2026, planning minister Rachmat Pambudy said on Monday.
Rachmat revealed the GDP growth target when delivering the government’s working plan for 2026.
Earlier data showed the economy grew by 4.87 percent in the first quarter from a year earlier, the weakest growth rate in more than three years.
Southeast Asia’s largest economy is targeting growth up 5.2 percent this year, up slightly from 5.03 percent in 2024.
The working plan is used by ministries to formulate policies for the next year, with the government usually starting discussions with parliament on the budget in the middle of the year.
