FX.co ★ Indonesia’s Economy Contracts in Q1 2026, Marking Sharp Reversal in Quarterly GDP Momentum

Indonesia’s gross domestic product (GDP) slipped into contraction in the first quarter of 2026, with quarter‑on‑quarter growth falling to -0.77%, according to data updated on 5 May 2026. The latest reading marks a stark turnaround from the fourth quarter of 2025, when the economy still managed positive quarterly growth of 0.86%.

On a quarter‑over‑quarter basis, the comparison highlights a clear loss of momentum: while the previous figure reflected an expansion from the third to the fourth quarter of 2025, the new data show that output in the first quarter of 2026 declined relative to the final quarter of last year. The shift from modest growth to contraction suggests mounting short‑term headwinds for Indonesia’s economy as 2026 gets under way.