JakartaGlobe-May 26
Government consumption grew sharply in the first quarter of 2026, driven by accelerated state spending and a series of fiscal stimulus measures aimed at supporting household purchasing power and economic activity, the Central Statistics Agency (BPS) said on Tuesday. Government spending reached Rp 815 trillion ($45.8 billion) during the January-March period, up 31.4% from a year earlier. The increase was supported by higher personnel spending related to Idul Fitri holiday bonuses, the recruitment of new civil servants, and rising expenditures on goods and services. BPS head Amalia Adininggar Widyasanti said the strong growth partly reflected a low base effect, as government consumption had contracted 1.22% in the first quarter of 202
According to Amalia, government spending patterns in previous years were typically slow at the beginning of the fiscal year, with most disbursement occurring toward year-end. However, in the first quarter of 2026, the government accelerated budget realization, including through economic stimulus programs introduced ahead of Idul Fitri. “Budget realization under President Prabowo Subianto’s administration has encouraged government stimulus, making government expenditure in the first quarter of 2026 much larger than in previous quarters,” Amalia said during The Forum event in Jakarta on Tuesday.
She said the government implemented two major stimulus measures during the quarter. The first focused on boosting public mobility, while the second involved accelerating fiscal spending to create an earlier multiplier effect on the economy compared with previous years. “We observed faster realization of spending on goods and services. In government consumption, this mainly consists of personnel spending and expenditures on goods and services,” Amalia said. Detailed data showed central government spending reached Rp 610.3 trillion, equivalent to 19.4% of the full-year target, marking a 47.7% increase from the same period last year. Meanwhile, transfers to regional governments totaled Rp 204.8 trillion, or 29.5% of the annual target, although the figure contracted 1.1% year-on-year.
Government spending on goods as of March 31, 2026, reached Rp 111.1 trillion, soaring 114.6% from the same period a year earlier. The increase was largely driven by the implementation of the free nutritious meals program, which accounted for Rp 54.4 trillion in spending. The remaining budget allocation included Rp 4.8 trillion for school operational assistance funds, Rp 4.2 trillion for biodiesel incentives, Rp 2 trillion for healthcare services, and Rp 900 billion for food price stabilization programs. Read more at:
