February 10, 2026 | 02:31 pm
TEMPO.CO, Jakarta — Indonesia’s Vice Finance Minister Juda Agung has expressed optimism that the country’s economic growth in the first quarter of 2026 will exceed the 5.39 percent recorded in the fourth quarter of 2025, citing stronger consumption and improved labor absorption.
“The 5.39 percent growth in Q4 2025 is still below its potential. That means there is room for it to be pushed higher,” Juda said at an event in Jakarta on Tuesday, February 10, 2026.
Juda stressed that economic expansion must translate into tangible improvements in public welfare. He underscored the close link between growth, consumer confidence, and broader socio-economic conditions.
“On the consumer side, the consumer confidence index has increased, in line with economic growth,” he said.
According to Juda, the next key challenge is ensuring that growth contributes to higher welfare, particularly through job creation and poverty reduction. He pointed to encouraging data from the latest National Labor Force Survey released in November.
“The labor force increased by 1.37 million in just one quarter. Typically, the annual increase is around 3 million,” he said.
Juda said the figures indicate that recent economic growth has played a significant role in opening up employment opportunities. He added that this positive momentum needs to be sustained and strengthened at the start of 2026.
“This is momentum that we must continue to push in the first quarter. The base is already strong at 5.39 percent, and in Q1 2026 we are aiming for even better results,” he said.
Juda also noted that Indonesia remains among the fastest-growing economies in the region. The country currently ranks fourth, behind Vietnam, which posted growth of over 8 percent, as well as Malaysia and Singapore, both at 5.7 percent.
Indonesia’s growth rate also outpaces that of Saudi Arabia and China, which recorded growth of 4.9 percent and 4.5 percent, respectively.
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